What is a sales forecast?

A sales forecast is indeed a prediction of future sales revenue. This is a critical component for businesses as it helps them plan and allocate resources effectively. By estimating how much product or service will be sold over a certain period, companies can set budgets, manage inventory levels, and make informed decisions about marketing strategies and staffing needs. Accurate forecasts allow a business to prepare for market demands and anticipate challenges, potentially leading to better financial performance.

The other choices represent different aspects of sales data but do not accurately define a sales forecast. While past sales revenue and historical records provide valuable context and data for creating a sales forecast, they do not constitute a forecast themselves. Similarly, an analysis of market share focuses on a company's performance relative to competitors rather than predicting future sales.