Factors That Should Be Taken into Consideration When Creating a Forecast

question 35

Multiple Choice

Factors that should be taken into consideration when creating a forecast include:

• A) History
• B) Competition
• C) Weather
• D) Seasonality
• E) All of the above

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Definitions:

Useful Life

The estimated duration of time that an asset is expected to be economically usable by an entity, affecting its depreciation calculation.

Product Cost Concept

A concept used in applying the cost-plus approach to product pricing in which only the costs of manufacturing the product, termed the product cost, are included in the cost amount to which the markup is added.

Manufacturing Costs

Manufacturing costs encompass all expenses directly involved in the production of goods, including materials, labor, and overhead.

Markup

The difference between the cost of a product and its selling price, expressed as a percentage over cost.