SALES FORECASTING

MEANING Sales forecasting means predicting the future

sales for a prescribed period. The sales forecasting is the starting point of any financial forecasting exercise. Most of the financial variable are estimated in relation to the estimated level of sales. Therefore, the accuracy of any financial forecast depends on the accuracy of the sales forecast.

Types of sales forecast QUANTITATIVE TECHNIQUE: These

techniques are based on the judgments of experts to translate qualitative information into qualitative figures.

TIME SERIES PROJECTION METHODS: These methods generate forecasts on the past behaviors of time series data.

Cont……… CAUSAL MODELS: These techniques

seek to develop forecasts based on cause-effect relationships expressed in explicit, quantitative manner.

CONCLUSION

Each technique has its merits and demerits . Choosing a single technique is dangerous. Therefore it is advisable to choose at least two techniques.