One Use of Short-Range Forecasts Is to Determine

question 108

Multiple Choice

One use of short-range forecasts is to determine:

• A)planning for new products.
• B)capital expenditures.
• C)research and development plans.
• D)facility location.
• E)job assignments.

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Definitions:

Budgeted Cost

This refers to the predicted costs of goods, services, projects, or operations that are planned for a future period.

Merchandise Purchases Budget

An estimate detailing the amount of goods a company plans to purchase over a certain period to meet its sales and inventory needs.

Selling Expenses Budget

A financial plan estimating the costs associated with promoting, selling, and distributing a product or service for a future period.

Sales Budget

An estimate of the sales revenue a company aims to achieve in a certain period, often used for planning and performance evaluation purposes.