Which of the following represents the correct sequence of forecasting using a "top-down" approach to forecasting?
A) Forecast of general economic and business conditions for the country as a whole -- market potential for relevant industry -- sales potential for company as a percentage of industry sales -- company sales forecast -- sales managers' forecasts
B) Forecast of general economic and business conditions for the country as a whole -- sales potential for company as a percentage of industry sales -- market potential for relevant industry -- company sales forecast -- sales managers' forecasts
C) Market potential for relevant industry -- forecast of general economic and business conditions for the country as a whole -- -- sales potential for company as a percentage of industry sales -- company sales forecast -- sales managers' forecasts
D) Forecast of general economic and business conditions for the country as a whole -- market potential for relevant industry -- company sales forecast -- sales potential for company as a percentage of industry sales -- sales managers' forecasts
E) Forecast of general economic and business conditions for the country as a whole -- company sales forecast -- market potential for relevant industry -- sales potential for company as a percentage of industry sales -- sales managers' forecasts

Question

Which of the following represents the correct sequence of forecasting using a "top-down" approach to forecasting?
A) Forecast of general economic and business conditions for the country as a whole --> market potential for relevant industry --> sales potential for company as a percentage of industry sales --> company sales forecast --> sales managers' forecasts
B) Forecast of general economic and business conditions for the country as a whole --> sales potential for company as a percentage of industry sales --> market potential for relevant industry --> company sales forecast --> sales managers' forecasts
C) Market potential for relevant industry --> forecast of general economic and business conditions for the country as a whole --> --> sales potential for company as a percentage of industry sales --> company sales forecast --> sales managers' forecasts
D) Forecast of general economic and business conditions for the country as a whole --> market potential for relevant industry --> company sales forecast --> sales potential for company as a percentage of industry sales --> sales managers' forecasts
E) Forecast of general economic and business conditions for the country as a whole --> company sales forecast --> market potential for relevant industry --> sales potential for company as a percentage of industry sales --> sales managers' forecasts

Quizplus · Accepted Answer

The correct sequence for the top-down approach to forecasting is to start with a forecast of general economic and business conditions for the country as a whole, then move on to the market potential for the relevant industry, followed by the sales potential for the company as a percentage of industry sales, the company sales forecast, and finally the sales managers' forecasts. This sequence allows for a systematic and logical approach to forecasting that takes into account both macro and micro-level factors. Choice A is the only option that follows this sequence.

Which of the Following Represents the Correct Sequence of Forecasting