ABSTRACT
The task of business management would be simpler if industry was not in a continuous state of change. This change is precipitated to a large extent by the growth of global competition. Forecasting can be described as the act of giving advance warning in time for beneficial action to be taken. The value and importance of advance information is a cornerstone of planning activity. Modern businesses are aware of sales forecasting and its overall purpose, but many managers do not pay due regard to its importance. The method where company forecasts are derived from macro-data is termed top-down forecasting. Conversely, a company can forecast from its own data by extrapolating company sales. This is termed bottom-up forecasting. The sales budget is the medium through which sales are generated. It is important to ensure that the sales budget co-ordinates with other budgets in the organization.
