SALES PLANNING FOR THE SMALL MANUFACTURER.
Abstract Under a system of free enterprise, profit is essential to the continuation of business. The effectiveness of management is therefore, judged by its ability to maintain constant earnings. Accountants have frequently defined earnings or profits as the residue remaining after matching costs against related revenues. To alter this profit picture, two possible courses are open to management: (1) either increase the sales income, without a similar increase in costs, or (2) reduce the costs endeavoring to keep the sales income constant. In order for a manufacturer to increase his sales, he must first try to determine what the future may hold for his business in so far as the demand for his product is concerned, and then to plan the activities of the business to capitalize profit-wise on the increased sales. In order for the business executive to forecast business activity, there are certain fundamentals which should always be considered. The past experience of the business concerned is of paramount importance. The sales records of the company are the source for all this type of information. The economic condition of the business, the industry and of the country should also be considered. Also the type of industry will have significance due to the type of market demand which it may have.
- DOI
- 10.2308/tar-7088660
- Volume
- 28 (2)
- Pages
- 244-248
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref