Exam 12: Sales Forecasting and Developing Budgets

Which of the following is an accurate generalization regarding test marketing as method of sales forecasting?

The budget's main objective is to minimize costs.

The budget's basic purpose is to keep costs and revenues in alignment.

An advantage of using the executive-opinion method of sales forecasting is that:

The sales forecast is usually the responsibility of the sales manager.

Errors in budgets tend to offset one another.

Which of the following is true about sales forecasts?

The sales forecast is derived from the sales budget.

The sales force composite can best be used when the sales force sells large items to relatively few buyers.

As a forecasting method,a "survey of buyer intentions" is most effective when:

The use of mathematical models is the most popular forecasting method.

Changes in which of the following may have an impact on sales forecasts:

To use regression analysis effectively as a method for sales forecasting:

Accurate sales forecasts would be difficult to obtain for which of the following products?

In sales department budgeting,items for sales force salaries and sales force commissions are most likely to be found in the ______ budget.

Which sales forecast is correct based on the regression model described below if the company decides to spend $10,000 on advertising: Y = 70.5 + 3.0x Where: y = unit sales in thousands X = dollars spent on advertising on thousands Where are forecasted unit sales?

Which of the following best represents the market potential-sales potential relationship?

Budgeting in the sales department is most likely to be used to:

Wayne Rexburg,a marketing analyst for Bosco Incorporated,uses exponential smoothing techniques to forecast sales.If Wayne decides to increase the smoothing constant from 0.4 to 0.8,he is:

A market index is a market factor expressed in a quantitative form relative to some base figure.