An external sales forecast is based on ________.
A) the relationships between a firm's sales and certain key economic indicators such as GDP and consumer confidence
B) a buildup, or consensus of sales forecasts through a firm's own sales channels
C) the prediction of a firm's sales over a given period through the analysis of the sales trends of its competitors.
D) developing the pro forma income statement to forecast sales and then express the various income statement items as percentage of projected sales

Question

Quizplus · Accepted Answer

An external sales forecast is based on the relationship between a firm's sales and certain key economic indicators such as GDP and consumer confidence. This means that the forecast is based on external market conditions and not on an internal buildup, analysis of competitor trends, or the pro forma income statement.

An External Sales Forecast Is Based on ________