Which of the Following Statements Is True About the Forecasting

question 42

Multiple Choice

Which of the following statements is true about the forecasting technique known as the "survey of buyer intentions"?

• A) It is the preferred technique for making long-term forecasts.
• B) It is time-consuming because data can only be collected through personal interviews conducted face-to-face or over the phone.
• C) It should only be used by organizations with huge quantities of customers so that results are based on a significant amount of data.
• D) Results may be somewhat misleading in that buyer intentions do not necessarily translate into actual purchases.

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Definitions:

Perpetual Systems

Inventory management systems that continuously update the quantity and value of inventory stock, allowing for real-time tracking.

Inventory Units

Measurements denoting the quantity of goods that a company has on hand at any given time.

Inventory Holding Gain

An increase in the value of inventory over time, typically due to inflation or increased demand, before the inventory is sold.

FIFO Earnings

The net income calculated using the First-In, First-Out method of inventory valuation, assuming the first items purchased are the first sold.