Consider a company that sells prescription drugs. It has salespeople who visit doctors and hospitals...

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Consider a company that sells prescription drugs. It has salespeople who visit doctors and hospitals to encourage physicians to prescribe its drugs. The company sells to drugstores. Salespeople are paid a salary plus a bonus if actual sales exceed planned sales. To plan operations, this company needs to develop estimates of total sales. Where should it get this information?

Robert · Accepted Answer

A. Consider a company that sells prescription drugs. It has salespeople who visit doctors and 
hospitals to encourage physicians to prescribe its drugs. The company sells to drugstores. 
Salespeople are paid a salary plus a bonus if actual sales exceed planned sales. To plan 
operations, this company needs to develop estimates of total sales. Where should it get 
this information? Incorporate topics from Chapters 7 – 11 in your answer.
The process of estimating future expected sales is part of budget forecasting. There are 
multiple ways of budget forecasting, however most preferred and reliable method is 
forecasting the estimated levels based upon past data using quantitative techniques. These 
techniques are more reliable as they are based on analysis of past results and can provide 
quite realistic amount/level related to sales, cost,

Consider a company that sells prescription drugs. It has salespeople who visit doctors and hospitals to encourage physicians to prescribe its drugs. The company sells to drugstores. Salespeople are...

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