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TO BUY LECTURES || CLICK THE LINK || DOWNLOAD ANDROID APP https://play.google.com/store/apps/de... To Buy our video lectures Call/whatsapp 9999997086 (2) USEFULNESS OF DEMAND FORECASTING Demand or sales forecasting isvery important in the context of business policy decisions. (a) The effectiveness of the plans of business managers depends upon the level of accuracy with which future events can be predicted. (b) The importance of demand forecasting has increased on account of mass production and production in response to demand. (c)Forecasting of demand plays a vital role in (i) The process of planning and decision-making. (ii) Budgetary planning and cost control in functional areas of finance and accounting. (iii) Efficient production planning, process selection, capacity planning, facility layout and inventory management. (iv) Production scheduling well in advance and obtain all necessary resources for production such as inputs, and finances. (v) Capital investments can be aligned to demand expectations.This will check the possibility of overproduction and underproduction, excess of unused capacity and idle resources. (vi) Formulation of suitable pricing and advertisement strategies. (vii) Sales forecasting in making key Marketingdecisions. • Though,No forecast is completely fool-proof and correct • but it plays one the most important role in Business as well as in Economy.