Companies That Engage in the Process of Forecasting Sales Must

question 20

Multiple Choice

Companies that engage in the process of forecasting sales must commit to:

• A)accuracy,even when the forecast is negative
• B)neutrality,by excluding any information that might cause deviations from the sales trends for previous years
• C)sharing the sales forecasts with competitors in exchange for access to the forecasts of those companies
• D)setting sales goals based on these forecasts
• E)full disclosure of these forecasts to the SEC

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Definitions:

Revenue Per Employee

A measure of the efficiency of the business in generating revenues, which is computed as revenue divided by number of employees.

LLC Members

Individuals or entities that own a portion of a Limited Liability Company (LLC) and have rights and responsibilities as outlined in the LLC's operating agreement.

Business Expansion

The process by which a company increases its size, operations, or market reach, often through investments in new facilities, acquisitions, or increasing workforce.

Revenue Per Employee

A financial metric indicating how much revenue each employee generates for the business, often used to assess efficiency and productivity.