Quantitative Sales Forecasting
The succession of averages derived from successive segments of a series of values
A: What is moving average? pg69
This investment appraisal method calculates how many years it takes to recover the initial cost.
A: What is payback period? pg 78
A decision-making tool that shows possible outcomes in a tree-like diagram.
A: What is a decision tree?
a technique used to improve the management of time and other resources.
A: What are critical path analysis? pg 90
Contribution is calculated as selling price minus this.
A: What are variable costs?pg98
The method of smoothing out fluctuations in sales data by averaging is called this.
A: What is moving averages?pg. 69
a method of investment appraisal that measures the net return per annum as a percentage of the initial spending.
A: What is average rate of return (ARR)?pg 78
The value calculated by multiplying the outcome by its probability. pg. 81
A: What is expected value?
The line of tasks that determines the minimum time to complete a project is called this.
A: What is the critical path?pg 92
The point at which total revenue equals total costs.
A: What is break-even?
A method that allows a business to predict future levels from past figures.
What is time-series analysis? pg. 69
The present value of future income from an investment project, minus the cost
A: What is net present value (NPV)? pg 78
Decision trees are useful because they force managers to consider this systematically.
A: What are risks/probabilities? pg. 85
The difference between the time available and the time taken for an activity.
A: What is float (or slack)?pg 94
Contribution per unit × number of units sold gives this.
A: What is total contribution?pg98
forecasting future trends based on past data
A: What is extrapolation? pg 69
the value today of a sum of money available in the future.
A: What is present value? pg 78
A limitation of decision trees is that they rely heavily on these, which may be inaccurate.
A: What are estimates/assumptions? pg 86
the time by which a task can be delayed without affecting the following task.
A: What is free float? pg 96
this strategy uses contribution when deciding what price to charge
A: What is contribution pricing? pg100
the relationship between two sets of values.
A: What is correlation? pg 69
the amount of money spent when setting up a new venture
A: What is capital cost? pg. 78
the process of working back through a decision tree, calculating the expected values at each node.
A: What is the rollback technique? pg 87
A limitation of CPA is that it does not account for this, such as strikes or supply delays.
A: What are unforeseen external factors? pg 95
overhead cost or expenses
A: What is overheads?