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Discussion Post: Marketing Sales Forecast
As you discovered in the text, the sales forecast is the most important input in financial planning. For some firms, this number is calculated by growing last year's sales by some percentage. For other firms, particularly those with new products, this number is much harder to forecast. Spend some time surfing the Internet and researching methods of sales forecasting used and then answer a few questions.
A. List some ways that are used to develop sales forecasts or provide input for a sales forecast.
B. Do you think all reasonable methods should work for all firms? Why or why not?
C. What factors may create differences of opinion between the Corporate Finance Dept and the Sales Dept regarding forecasting?
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