Percentage error for the total sales forecast

This measure calculates total sales forecasting percentage error. It is calculated as the absolute value of ((Projected – actual sales) / actual sales) * 100. The projected period and the actual sales must correspond to the same period. Forecasted/Projected sales is the sales forecasted for the financial period. This measure is part of a set of Process Efficiency measures that help companies optimize the performance of their "Perform planning/budgeting/forecasting" process by minimizing waste and refining resource consumption.

Benchmark Data

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Measure Category:
Process Efficiency
Measure ID:
101762
Total Sample Size:
7,175 All Companies
Performers:
25th Median 75th
- 1.8% -
Key Performance Indicator:
No
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Compute this Measure

Units for this measure are percent.

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Percentage error for the total sales forecast

Key Terms

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Process efficiency represents how well a process converts its inputs into outputs. A process that converts 100% of the inputs into outputs without waste is more efficient than one that converts a similar amount of inputs into fewer outputs.

Measure Scope

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Cross Industry (8.0)

  • 9.1.2.1 - Develop and maintain budget policies and procedures (10771) - Formulating financial budgetary guidelines and strategies. Develop a framework for rules and regulations regarding budgets. Create a step-by-step process to achieve financial goals.
  • 9.1.2.2 - Prepare periodic budgets and plans (10772) - Creating reports on a quarterly or annual basis for fund allocation. Create a financial statement that estimates revenues and expenses over a specific period of time. (Leverage budget methods such as cost-based and zero-based budgeting techniques, in light of the periodic targets outlined during Develop and maintain budget policies and procedures [10771].)
  • 9.1.2.3 - Operationalize and implement plans to achieve budget (20135) - Putting budgeting plans into practical use keeping within designated forecasting parameters.
  • 9.1.2.4 - Prepare periodic financial forecasts (10773) - Creating estimates of the projected income and expenses required over a predetermined time frame. Develop the projections of profit and loss statements, balance sheets, and the cash flow forecast.
  • 9.1.2.5 - Perform variance analysis against forecasts and budgets (20136) - Conducting a quantitative analysis between what was forecasted and budgeted and actual financial behavior.