Convex Computer Company Makes Many Different Forecasts

question 8

Multiple Choice

Convex Computer Company makes many different forecasts.Which of the following forecasts is probably the least accurate?

• A)Total number of computers (laptops and desktops)to be sold next month.
• B)Total number of laptops to be sold next month.
• C)Total number of desktops to be sold next year.
• D)Total number of laptops with 2 gigabyte RAM,80 gigabyte hard drive,and 16x DVD drive to be sold next year.

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Definitions:

Excess Capacity

The situation where a company can produce more than is required to meet the demand, usually indicating underutilization of resources.

Special Order Price

The price at which goods or services are sold under a special order, often differing from standard pricing.

Net Income

The total earnings of a company after subtracting all expenses and taxes from revenue, indicating its profitability.

Variable Costing

A method of accounting where only variable production expenses, including direct materials, direct labor, and variable manufacturing overhead, are counted towards the cost of products.