The Most Important Reason That a Firm Might Use a Sales

question 58

Multiple Choice

The most important reason that a firm might use a sales force forecasting survey to determine its sales forecast is

• A) salespeople are generally optimistic about the future and will provide excellent forecast targets.
• B) most salespeople tend to have a pessimistic outlook, which is more likely to result in an achievable sales forecast.
• C) this tends to be the fastest way to determine a good sales forecast for the upcoming period.
• D) the averaging and other statistical techniques applied to these forecasts result in extremely accurate numbers.
• E) the sales staff is closer to the actual customers on a regular basis than anyone else in the organization.

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Definitions:

Demand-Based Method

A method of price setting based on the demand for the product.

Yield Pricing

A pricing strategy in which prices are adjusted based on the demand and supply of goods or services to maximize revenue.

Theory of Constraints

A management philosophy focused on identifying and managing bottlenecks that limit a system's performance, effectiveness, or profit potential.

Product Cost Distortion

When the actual cost of a product is inaccurately allocated, leading to misleading cost information and potentially flawed pricing decisions.