Which of the Following Would Be an Advantage of Using

question 120

Multiple Choice

Which of the following would be an advantage of using opinions of a sales force to develop a demand forecast?

• A)The sales staff is least affected by changing customer needs.
• B)The sales force can easily distinguish between customer desires and probable actions.
• C)The sales staff is often aware of customers' future plans.
• D)Salespeople are least likely to be influenced by recent events.
• E)Salespeople are least likely to be biased by sales quotas.

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, indicating the amount available to cover fixed costs and generate profit.

Sales Price Variance

The difference between the actual selling price and the expected selling price of a product, multiplied by the number of units sold.

Fixed Overhead Budget Variance

The gap between the planned fixed overhead expenses and the real fixed overhead expenses that were realized.

Variance Reports

Financial documents that compare actual financial results to planned or budgeted amounts, highlighting discrepancies.