Katherine Is Developing a Forecast for Her Company's Next Year's

question 9

Multiple Choice

Katherine is developing a forecast for her company's next year's sales of an organic fertilizer to retail gardening nurseries.She is assembling the sales estimates for her company's product by adding together the territory estimates provided by her salespeople.She is engaging in _____ forecasting.

• A) cumulative
• B) geographic
• C) gross margin quota
• D) profit quota
• E) bottom-up

---

Definitions:

Cost Object

An item for which costs are measured and assigned, which can include products, services, projects, or customers.

Volume of Activity

A term referring to the total amount of work or operations completed in a specific period, often used in analyzing business efficiency or productivity.

Just-In-Time Manufacturing

Just-in-time manufacturing is an inventory management strategy where materials are produced or acquired only as needed, reducing waste and improving efficiency.

Inventories

Materials and goods held by a business for the purpose of resale, production, or as raw materials.