Which of the Following Is True of a Sales Forecast

question 21

Multiple Choice

Which of the following is true of a sales forecast?

• A) It is the value received by a firm in return for a good or service.
• B) It is an estimate of the amount a firm expects to sell during a given period in the future.
• C) It represents the difference between revenue earned and expenses incurred.
• D) It is an estimate of the owners' share of the business, after liabilities are subtracted from assets.

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Definitions:

Job Order Costing

An accounting method used to track costs and evaluate the profitability of individual jobs, suitable for companies that produce custom products or jobs.

Large Aircraft Manufacturers

Companies that specialize in the development, assembly, and selling of aircrafts that have a high passenger or cargo capacity.

Process Costing

An accounting methodology applied where production is continuous, assigning costs to units of product on the basis of process they go through.

Customized Products

Items or services tailored to meet the specific needs or preferences of individual customers.