Avoiding the pitfalls in sales forecasting
Article Abstract:
Sales forecasts are frequently blamed for operational problems within companies, and overly optimistic forecasts that are not achieved can result in financial losses and employee layoffs. To improve the accuracy and reliability of sales forecasts, management accountants should: seek the support of upper management, prepare forecasts without considering the results management would like to see, minimize reliance on statistics (which are historical), and emphasize cost versus benefit relationships (rather than strategic planning concepts). Examples of sales forecasting are analyzed for participants in the high-tech industries, including: Texas Instruments, Atari, Apple Computer and TRW. The final responsibility for accurate sales forecasts rests with top management, and the best way to get accurate forecasts is to rely on rationality and common sense.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1986
User Contributions:
Comment about this article or add new information about this topic:
Controlling R&D spending
Article Abstract:
Company controllers of high technology start up firms typically face a major problem in their control over the performance of the R&D department. The R&D department in most start-ups is given greater autonomy than other departments, which causes problems for controllers trying to ensure that the R&D department operates efficiently. A conflict typically arises between controllers and the R&D department since controllers create information systems that are focused on keeping the R&D department within the parameters of its budget while the R&D department creates information systems focused on getting projects done on time. Iterative planning software offers a solution for combining the information systems of both the controller and R&D departments for controlling an R&D project.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1991
User Contributions:
Comment about this article or add new information about this topic:
High-tech budgeting: R&D drives the budget of the high-tech start-up
Article Abstract:
The views and opinions of Photon Technology International (South Brunswick, NJ) Exec VP and CFO Charles L. Grant on accounting for R&D in a high-technology start-up firm are presented. Grant states that there are factors other than operations that generate the R&D budget of a high-tech firm. High-tech firms must develop technology that mets the needs of the clients who buy the product. High-tech firm can avoid cash crises by installing competent product and project managers. Marketing and R&D must be blended through a regular subjective view of the budgeting process to make the high-tech firm a success.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1991
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: The need for a forecasting champion. Improving salesforce forecasting
- Abstracts: Facing up to the need for a management revolution. Rethinking scale. Competition and compassion
- Abstracts: Closing the books: on-line editing smooths the way. Managing off-balance-sheet financing. Dow opts for less - and gains
- Abstracts: A second opinion: the AICPA's proposal for federal accounting reform - 'it's on the mark'. Congressman DioGuardi: the U.S. government needs a chief financial officer
- Abstracts: Eliminate the Ph.D. requirement for accounting educators. How do companies analyze overhead?