Sales Projections Are Often the Most Difficult Part of the Budgeting

question 39

True/False

Sales projections are often the most difficult part of the budgeting process because it involves a considerable amount of subjectivity.

---

Definitions:

Economic Profits

The variance between total income and total expenses of a business, factoring in both clear and hidden costs.

Constant-cost Industry

An industry where input costs remain unchanged as industry output changes, leading to a flat supply curve.

Industry Supply

The total output of goods or services that producers in an industry are willing and able to sell at different price levels, during a certain time period.

Long-run Supply Curve

A graphical representation showing the relationship between market price and the amount of goods supplied by producers, considering all factors of production can be varied.