Question 1

The number of secretaries is a basic market factor for desktop computer sales.

Accepted Answer

A) True 
 B)False  False

Question 2

A sales forecast is the key factor in all operational planning.

Accepted Answer

A) True 
 B)False  True

Question 3

The controlling factor in all budgeting and operational planning in a company is the:

Accepted Answer

A)  Sales potential.
B)  Sales quota.
C)  Market potential.
D)  Sales forecast.
E)  Market share. D

Question 4

If the market potential for beer is $100 million in Denver and Coor's share is 60 percent,what is Coor's sales forecast?

Accepted Answer

A)  The sales forecast is $60 million.
B)  The sales forecast should be something over $60 million.
C)  There is not enough information to determine the sales forecast.
D)  the sales forecast would be something over $60 million.
E)  The sales forecast would be somewhat lower than $60 million.

Question 5

The correct terminology in demand forecasting may be illustrated by saying that the ______ for snow skis in the Midwest next year is 800,000 pairs,while the ______ for Head (brand)skis in that market is 100,000.

Accepted Answer

A)  Market potential - sales potential (market share) .
B)  Sales potential - sales forecast.
C)  Market share - sales potential.
D)  Sales forecast - market potential.
E)  None of these is correct.

Question 6

A major advantage of the test-market method of sales forecasting is that it:

Accepted Answer

A)  Usually can be done quickly.
B)  Usually can be done inexpensively.
C)  Measures the market share under actual selling conditions.
D)  Is a mathematically exact method of estimating potential.
E)  Accurately measures future buying intentions of consumers.

Question 7

To say that "the market potential for snow skis in Colorado and Utah is 200,000 pairs" is not a correct way of stating market potential because:

Accepted Answer

A)  The dollar sales figure is not stated.
B)  The time period for these sales is not stated.
C)  The geographic market is limited to only two states.
D)  Nothing was said about maximum possible sales.
E)  None of thesE.That is,the statement is correct as it stands.

Question 8

The method of budgeting by percentage of sales reflects all of the following except:

Accepted Answer

A)  Percentages used for different categories may be based on management's experience and/or feelings about what portion of sales dollars can be spent to achieve profit.
B)  Multiplying the sales forecast by exactly the same percentage for each category of expense.
C)  That in the event of declining sales forecasts,budget allocations for all expense categories also decrease.
D)  The tremendous impact on the effectiveness of this method by management's ability to accurately forecast sales budgets.
E)  Forecasting based on published industry averages for expense categories when they are adjusted to reflect the unique aspects of an organization.

Question 9

With the availability of computers to generate spreadsheets,it is now possible to make changes in one part of the budget and to see immediately the impact on all other parts of the budget.

Accepted Answer

A) True 
 B)False

Question 10

As a technique for determining market potential,a major strength of the market-factor-derivation method is that:

Accepted Answer

A)  Many of the figures used in the computation are only estimates.
B)  The level of validity is quite high.
C)  It is too complex for the average sales manager to understand.
D)  It is one of the more expensive methods.
E)  It usually takes several months to complete the calculations.

Question 11

Sales potential is the total expected sales of a given product for the entire industry.

Accepted Answer

A) True 
 B)False

Question 12

It is difficult to test market a product whose consumption cycle is long.

Accepted Answer

A) True 
 B)False

Question 13

Marketing goals must be established before a forecast can be made.

Accepted Answer

A) True 
 B)False

Question 14

The sales force composite method of forecasting sales is best used for industrial equipment.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is the best mechanism for coordinating and controlling the activities of the major departments in a firm?

Accepted Answer

A)  Sales forecasting.
B)  A marketing cost analysis.
C)  Budgeting.
D)  Determining market and sales potentials.
E)  Organizing the major departments.

Question 16

The longer the revenue lag,the greater the pressure on the budget system.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following activities are not necessary when reviewing a company's forecasting process?

Accepted Answer

A)  A review of the factors influencing sales of the product must take place to enhance forecasting accuracy.
B)  A check of the accuracy of past forecasts should occur.
C)  A review of the data used in sales forecasting should take place.
D)  A check of the resources allocated by the company to the forecasting function should be undertaken to determine if adequate resources are being appropriated.
E)  All of these are necessary.

Question 18

Which of the following would be the best market factor for estimating the demand for sales management textbooks?

Accepted Answer

A)  Number of sales executives.
B)  Number of business school undergraduate students.
C)  Number of marketing majors.
D)  Buying power of college students.
E)  Number of students enrolled in sales management courses.

Question 19

Which of the following methods of sales forecasting is least dependent on historical data?

Accepted Answer

A)  Test marketing.
B)  Trend analysis.
C)  Correlation analysis.
D)  Direct derivation.
E)  Analysis of past sales.

Question 20

The market potential for a product may best be defined as:

Accepted Answer

A)  Our expected company sales of that product during next year.
B)  Our company's share of the market for that product.
C)  Being synonymous with sales potential.
D)  The expected total industry sales of the product in a given market during a stated period of time.
E)  A market index.

Exam 12: Sales Forecasting and Developing Budgets

The number of secretaries is a basic market factor for desktop computer sales.

A sales forecast is the key factor in all operational planning.

The controlling factor in all budgeting and operational planning in a company is the:

If the market potential for beer is $100 million in Denver and Coor's share is 60 percent,what is Coor's sales forecast?

The correct terminology in demand forecasting may be illustrated by saying that the for snow skis in the Midwest next year is 800,000 pairs,while the for Head (brand) skis in that market is 100,000.

A major advantage of the test-market method of sales forecasting is that it:

To say that "the market potential for snow skis in Colorado and Utah is 200,000 pairs" is not a correct way of stating market potential because:

The method of budgeting by percentage of sales reflects all of the following except:

With the availability of computers to generate spreadsheets,it is now possible to make changes in one part of the budget and to see immediately the impact on all other parts of the budget.

As a technique for determining market potential,a major strength of the market-factor-derivation method is that:

Sales potential is the total expected sales of a given product for the entire industry.

It is difficult to test market a product whose consumption cycle is long.

Marketing goals must be established before a forecast can be made.

The sales force composite method of forecasting sales is best used for industrial equipment.

Which of the following is the best mechanism for coordinating and controlling the activities of the major departments in a firm?

The longer the revenue lag,the greater the pressure on the budget system.

Which of the following activities are not necessary when reviewing a company's forecasting process?

Which of the following would be the best market factor for estimating the demand for sales management textbooks?

Which of the following methods of sales forecasting is least dependent on historical data?

The market potential for a product may best be defined as:

Exam 12: Sales Forecasting and Developing Budgets

The number of secretaries is a basic market factor for desktop computer sales.

A sales forecast is the key factor in all operational planning.

The controlling factor in all budgeting and operational planning in a company is the:

If the market potential for beer is $100 million in Denver and Coor's share is 60 percent,what is Coor's sales forecast?

The correct terminology in demand forecasting may be illustrated by saying that the ______ for snow skis in the Midwest next year is 800,000 pairs,while the ______ for Head (brand) skis in that market is 100,000.

A major advantage of the test-market method of sales forecasting is that it:

To say that "the market potential for snow skis in Colorado and Utah is 200,000 pairs" is not a correct way of stating market potential because:

The method of budgeting by percentage of sales reflects all of the following except:

With the availability of computers to generate spreadsheets,it is now possible to make changes in one part of the budget and to see immediately the impact on all other parts of the budget.

As a technique for determining market potential,a major strength of the market-factor-derivation method is that:

Sales potential is the total expected sales of a given product for the entire industry.

It is difficult to test market a product whose consumption cycle is long.

Marketing goals must be established before a forecast can be made.

The sales force composite method of forecasting sales is best used for industrial equipment.

Which of the following is the best mechanism for coordinating and controlling the activities of the major departments in a firm?

The longer the revenue lag,the greater the pressure on the budget system.

Which of the following activities are not necessary when reviewing a company's forecasting process?

Which of the following would be the best market factor for estimating the demand for sales management textbooks?

Which of the following methods of sales forecasting is least dependent on historical data?

The market potential for a product may best be defined as:

The correct terminology in demand forecasting may be illustrated by saying that the for snow skis in the Midwest next year is 800,000 pairs,while the for Head (brand) skis in that market is 100,000.