chapter 6 hw - 1) Business spend time, effort and money to...

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1) Business spend time, effort and money to produce forecasts because just about  every decision you make as a person is based on forecast, such as how much  money you can spend on food, so why shouldn’t businesses forecast.  A  business needs to have a good forecasting system because it is an essential  part, and without it, could be devastating to a company.  Businesses develop  new products, set production quotas based on their forecast analysis.   2) The primary assumption behind the experience approach is the fact that financial  managers often assume sales, expenses or earnings will grow at certain rates in  the future because that is how the rates grew in the past 3) The sales forecasting process is based on a number of things internal to a  company and external.  The process begins with the sales and marketing  personnel who usually provide assessments of the demand of the competition,  because it doesn’t make sense to make a forecast if the demand falls.  The top  management makes strategic decisions that affect the firm as a whole.  Financial  Managers than collect, and analyze the sales information. 
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This note was uploaded on 05/11/2008 for the course BUS 330 taught by Professor Nugent during the Spring '08 term at SUNY Stony Brook.

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chapter 6 hw - 1) Business spend time, effort and money to...

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