Which of the Following Statements Is True About the Forecasting

question 103

Multiple Choice

Which of the following statements is true about the forecasting technique known as the "sales force composite"?

• A) Because salespeople are concerned about how estimates will influence perceived performance, they typically inflate their estimates.
• B) It is a time-consuming method because it involves so many members at all levels of an organization.
• C) It is based on the belief that the organization's members who are closest to the marketplace will have the best insights into expected short-term sales.
• D) It is only valuable when applied to a very small geographic region.

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Definitions:

Opportunity Cost

Opportunity Cost refers to the potential benefits or income lost when choosing one alternative over another.

Direct Expenses

Costs that can be directly attributed to a specific product, service, or project, such as raw material costs.

Market Trends

The general direction in which a market or the prices of a particular set of goods and services is moving.

Corporate Centre

The central unit within a corporation that oversees and supports the activities of its various divisions and operations.