Predictive analysis is an analysis method in Management Accounting. It refers to the process of using specific methods to conduct business forecasting according to certain principles and procedures.
The methods of predictive analysis are mainly based on quantitative analysis and qualitative analysis. Qualitative analysis mainly includes: Survey Analysis and Judgment Analysis. Quantitative analysis methods mainly include: Trend Forecast Analysis Method, Causal Forecast Analysis Method, Seasonal Forecast Analysis Method, and Purchasing Power Index Method.
- Sales Forecast
Sales forecast refers to the estimation of the sales quantity and sales amount of all products or specific products within a certain time in the future. The sales forecast is based on the full consideration of various influencing factors in the future, combined with the actual sales performance of the company and puts forward practical sales targets through certain analysis methods.
- Profit forecast
Profit forecasting is the estimation and measurement of the company’s achievable profit in a certain period of time. It predicts the profit level that the company can achieve in the future according to various factors affecting the changes in the company’s profits, or predicts the sales volume or sales needed to achieve the target profit.
- Cost forecast
Cost forecasting refers to the use of certain scientific methods to make a scientific estimate of future cost levels and their changing trends. Through cost forecasting, mastering the future cost levels and their changing trends will help reduce blindness in decision-making. This makes it easier for business managers to select the optimal solution and make correct decisions.
- Funds forecast
The fund forecast refers to the amount of funds and sources required by the company in a certain period of time in the future based on sales forecasts, profit forecasts, and cost forecasts. It also takes account of the company’s future development goals, various factors affecting the funds, the process of applying directions and their effects.
Predictive analysis and hypothetical situation analysis help users to review and weigh the influence of potential decisions. It can be used to analyze historical patterns, to predict future performance and also take preventive measures. This level of analysis can provide a variety of information for the planning process and provide insights into the company’s future.