Which of the Following Statements Is True of Sales Forecasting

question 48

Multiple Choice

Which of the following statements is true of sales forecasting?

• A) In many cases,the best sales forecast you can come up with is an educated guess.
• B) It is better to have a high sales projection initially and adjust as actual sales happen.
• C) Using traditional retailers and distributors does not change the price you set at the factory.
• D) Ignore your capacity when identifying your potential market as you will not be serving the entire potential market.

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Definitions:

Revenue

The aggregate revenue produced from the sales of goods or services central to a company's main business activities.

Spending Variances

An analysis that breaks down the discrepancy between what was budgeted for expenses and what was actually spent, providing insights for financial management.

Patient-visits

A metric used in healthcare to represent the number of times patients receive services from a provider or facility.

Planning Budget

A financial plan that outlines expected revenues, expenses, and other financial activities over a specific period, often used for organizational management and control.