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What is the purpose of a 10-year sales projection? You may answer this question with a...

What is the purpose of a 10-year sales projection?

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Projection means forecast of the past into the future. It is quantitative method for the future sales. Projection is a part of planning, but it's not everything.

Sales projection is used within the different functional areas in a company like

  • Production: Helps schedule work to achieve optimum uses. Helps control finish product inventory
  • Sales: Establish sales quotas. Helps with compensation plans
  • Finance: helps financial planning. determines cash requirements.
  • Purchasing: minimize overstocking. maintains adequate stocks of raw material.
  • Top Managment: helps guide policy
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