Question

Calculating sales estimates, derived from an estimate of the sales growth rate, is how the forecasting process begins. Select one: True False

Answer 1

True

Step-by-step explanation:

The first step in the forecasting process starts with the projected sales estimates. Once these estimates are made, it becomes possible to build up the production budget, which relies on the quantities of sales and the expected closing inventory for each period. Then, the details of production forecast will determine the quantities of raw materials required for production and the purchases that must be made to meet the production requirements.