Final answer:
A sales forecast is a prediction of a company's future sales revenue based on various factors. It helps businesses plan their operations and make informed decisions. The market value of a company's share can be influenced by its sales forecast, and a sales forecast is typically based on operating and financial budgets.
Step-by-step explanation:
A sales forecast is a prediction of a company's future sales revenue based on current market conditions, historical data, and various other factors. This forecast is an important tool for businesses as it helps them plan their operations and make informed decisions about resource allocation and investment.
Regarding the options provided:
- a. The market value of a company's share depends on its forecasted sales. This statement is generally true. A company's stock price can be influenced by factors such as its sales forecast, as investors consider future earnings potential when evaluating a company's value.
- b. Creation of a sales forecast is the responsibility of the Marketing Department. This statement is not necessarily true. While the Marketing Department may contribute to the sales forecast by providing market insights, input from various departments, such as finance and operations, is often required to create a comprehensive forecast.
- c. A sales forecast is done on the basis of operating budgets and financial budgets. This statement is true. Sales forecasts are typically based on the financial goals and budgets of a company, taking into account factors such as anticipated expenses, pricing strategies, and sales volume.
- d. A sales forecast is not a part of a master budget. This statement is not true. A sales forecast is an integral part of the master budget, which provides an overall financial plan for a company and guides its operations.