Attempts to predict the future behaviour of sales. Measuring and forecasting sales can help a business to plan the use of resources and ensure the smooth running of the business. This is because if a business is able to predict its level of sales volume accurately, then many other important variables might be forecasted. For example, if a business estimates it might sell 10,000 units in one month, then it can plan for material purchases, labour requirements, production scheduling, distribution and cash flow, to name but a few. It might also help to plan for price changes, especially if the forecasted volume does not allow a business to achieve its objectives. A longer term forecast might help a firm to establish whether it can achieve possible sales targets given its current capacity, and help with decisions over capital investment. Sales forecasting, therefore, plays a significant role in marketing, production, financial and human resources planning.