Regarding Sales Forecasting

question 16

Multiple Choice

Regarding sales forecasting:

• A) marketing managers usually develop their own national income and industry forecasts.
• B) trend extension cannot be used when past sales have varied.
• C) the final step should be to develop an industry sales forecast.
• D) trend extension assumes that past conditions will continue unchanged into the future.
• E) only one forecasting method should be used because different techniques give different forecasts.

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Definitions:

Gross Investment

The total amount of investment in capital goods in an economy over a specific period, not accounting for depreciation.

Depreciation

A reduction in the value of an asset over time due to wear and tear or obsolescence.

Net Investment

The net expenditure on acquiring new capital assets after deducting the depreciation of the present capital assets.

Limited Liability

A legal structure that limits the financial liability of an individual in a business to their investment in the company, protecting personal assets from business debts and obligations.