A Sales Forecast Based on an Estimate of Total Market

question 22

Multiple Choice

A sales forecast based on an estimate of total market potential for a specific market and projecting the market share a business can capture in any given area at any given time is using what approach?

• A) Build-up
• B) Guesstimate
• C) Break-down
• D) Pro forma

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Definitions:

Absorption Costing

An accounting method that includes all manufacturing costs—direct materials, labor, and both variable and fixed overhead—as part of the cost of a finished product.

Absorption Costing

An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overheads - in the cost of a product.

Variable Costing Income (VCI)

An accounting method that includes only variable costs—costs that change with production level—in calculating net income.

Full Costing Income (FCI)

A method of accounting that allocates all fixed and variable costs to products, operations or projects to determine profitability.