Lesson 2.2.1

2.2.1 Sales forecasting Quiz: Pearson Edexcel Business, Unit 2

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 2.2.1, Sales forecasting: 20 multiple choice questions for the Pearson Edexcel Business (9BS0), Unit 2: Managing business activities, written with Revision Ninja.

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The 20 questions

  1. What is the primary purpose of creating a sales forecast?

    • Calculating exact profit
    • Setting tax rates
    • Auditing past sales
    • Planning resource needs

  2. Which factor is an example of a consumer trend affecting sales forecasting?

    • Competitor price cuts
    • Increased corporate tax
    • Shifting dietary habits
    • Rising interest rates

  3. Which factor is an economic variable that affects a sales forecast?

    • Changing interest rates
    • Changing fashion tastes
    • Updated brand image
    • New rival opening

  4. A firm's main competitor launches a major advertising campaign. Which factor affecting sales forecasts does this illustrate?

    • Economic variables
    • Actions of competitors
    • Consumer trends
    • Seasonal fixed costs

  5. Which of these makes sales forecasting difficult for businesses?

    • Setting product prices
    • Calculating fixed costs
    • Paying worker wages
    • Unpredictable market changes

  6. A business forecasts sales of 4,000 units next year, but a recession cuts demand by 20%. What are the forecast sales now?

    • 800 units
    • 4,800 units
    • 3,800 units
    • 3,200 units

  7. Why is sales forecasting difficult for a brand new product?

    • Stable demand
    • No historical data
    • Fixed prices
    • Known competitors

  8. Why do businesses create multiple sales forecasts showing different potential scenarios?

    • Scenario planning
    • Tax avoidance
    • Setting wage rates
    • Reducing fixed costs

  9. Which factor is most likely to reduce the reliability of a sales forecast?

    • Stable interest rates
    • Unexpected legislation changes
    • Known fixed costs
    • Predictable supplier prices

  10. A business forecasts sales of 1,000 units in year one, rising by 10% a year. What is the forecast for year two?

    • 1,100 units
    • 1,200 units
    • 900 units
    • 1,010 units

  11. What type of sales forecasting relies on customer opinions gathered from market research?

    • Quantitative forecasting
    • Qualitative forecasting
    • Variance analysis
    • Zero-based budgeting

  12. What is a primary business reason for producing a sales forecast?

    • Calculating tax liabilities
    • Auditing past accounts
    • Resource planning
    • Setting interest rates

  13. What common managerial bias often leads to overoptimistic sales forecasts?

    • Ignoring past sales
    • Overestimating future demand
    • Overstating raw materials
    • Underestimating fixed costs

  14. Which combination best improves the accuracy of a sales forecast?

    • Guarantees and intuition
    • Data and research
    • Guesses and estimates
    • Hope and speculation

  15. A business expects its interest rate to rise, which could reduce consumer spending. What type of factor is this for a sales forecast?

    • Action of competitors
    • Fixed cost
    • Consumer trend
    • Economic variable

  16. A firm's forecast has to allow for a potential price war with rivals. Which factor is this?

    • Economic variables
    • Consumer trends
    • Actions of competitors
    • Business objectives

  17. What is a key limitation of relying on sales forecasts?

    • Zero variable costs
    • Guaranteed profit margins
    • Changing external factors
    • Fixed customer demand

  18. A new competitor enters a firm's market. How should the firm adjust its sales forecast?

    • Lower forecast growth
    • Double sales projections
    • Ignore competitor actions
    • Increase price expectations

  19. What data source is used to construct a qualitative sales forecast?

    • Historical revenue figures
    • Statistical trend lines
    • Expert opinions
    • Past sales volumes

  20. A business's sales forecast for next month is 1,200 units, and it sells 1,050 units. What is the forecast error?

    • 150 units over-forecast
    • 150 units under-forecast
    • 2,250 units over-forecast
    • 1,050 units under-forecast

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