Theme 2 Topic 9 - Sales Forecasting, Sales Revenue & Costs

Question 1

Define Sales Revenue

Answer 1

All the money received from selling the products and services before costs are deducted

Question 2

Revenue =

Answer 2

Price x Number of Items Sold

Question 3

What six other words can also be used to say sales revenue?

Answer 3

Income, Total revenue, Sales turnover, Turnover, Sales, Revenue

Question 4

What two things could a business do to increase its revenue?

Answer 4

Change the price, Sell more products

Question 5

Define Sales Volume

Answer 5

The number of products or services a business sells

Question 6

Sales Volume =

Answer 6

Sales Revenue/Selling Price

Question 7

Define Sales Forecasting

Answer 7

Accurately estimating sales revenue for the future

Question 8

What are three purposes of sales forecasting?

Answer 8

Plan ahead, Keep track of inflows/outflows, Predict demand

Question 9

What are three factors affecting sales forecasting?

Answer 9

Seasonal demand, Competition, Economy/interest rates

Question 10

What is a drawback of sales forecasting?

Answer 10

Forecasts are not guaranteed - only a prediction

Question 11

What might businesses in dynamic markets find difficult?

Answer 11

Forecasting accurately beyond a very short period of time in the future

Question 12

Define Fixed Costs

Answer 12

Costs that DO NOT vary directly with output in the short term

Question 13

What are three examples of fixed costs?

Answer 13

Rent, Salaries, Administrative costs

Question 14

Define Variable Costs

Answer 14

Costs that DO vary directly with output in the short term

Question 15

What are three examples of variable costs?

Answer 15

Raw materials, Wages, Royalty payments

Question 16

Define Total Costs

Answer 16

The sum of the fixed and variable costs

Question 17

Total Costs =

Answer 17

Fixed Costs + Variable Costs