Briefly describe the methods of forecasting future demand
What will be an ideal response?
The methods are:
1. Survey of buyers' intentions: Marketers survey customers about purchase probability, present and future finances, and expectations about the economy.
2. Composite of sales force opinions: Sales representatives are asked to estimate their future sales.
3. Expert opinion: The company obtains forecasts from experts, including dealers, distributors, suppliers, consultants, and trade associations. They also may buy forecasts from economic-forecasting firms.
4. Past-sales analysis: The forecast is based on time-series analysis, exponential smoothing, statistical demand analysis, or econometric analysis. These methods use past sales as the basis for the forecast.
5. Market-test method: The marketers conduct a direct-market test to understand customer response and estimate future sales.
You might also like to view...
Discounting a note receivable
a. Requires using an account called discount on notes receivable b. Is the process of lending money c. Slows the collection process d. Is the process of selling a promissory note
The ______ is the lowest hourly rate of pay generally permissible by federal law.
A. pay rate B. minimum wage C. wage compression D. overtime
________ is the concept that organizations have a duty to all societal stakeholders to operate in a manner that takes each of their needs into account.
A. Ethics B. Corporate social responsibility C. Business savvy D. Stakeholder accountability
On July 31, Orwell Co. has $448,800 of accounts receivable. Required:1. Prepare journal entries to record the following selected August transactions. The company uses the perpetual inventory system. 2. Also prepare any footnotes to the August 31 financial statements that result from these transactions.3. Calculate the balance in the Accounts Receivable account as of August 10. Aug. 3Sold $250,000 of merchandise (that cost $122,000) to customers on credit.Aug. 5Sold $300,000 of accounts receivable to Cash Solutions. Cash Solutions charges a 7% factoring fee.Aug. 8Received $165,200 from customers in payment on their accounts.Aug. 9Borrowed $50,000 cash from State Bank, pledging $65,000 of accounts receivable as security for the loan. The note is a 90-day, 9% note.
What will be an ideal response?