When Predicting Annual Sales Increase, a Good Rule of Thumb

question 34

Multiple Choice

When predicting annual sales increase, a good rule of thumb is:

• A) 0% base then forecast according to strategies
• B) 5% increase over the prior year
• C) 10% increase over the prior year
• D) 15% increase over the prior year

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Definitions:

Working Capital Management

The management of a company’s short-term assets and liabilities to ensure its continued operation and maximize financial efficiency.

Inventory Management

The supervisory process focusing on ordering, storing, using, and selling a company's inventory.

Short-Term Debt Financing

Borrowing of funds for a period of one year or less to meet short-term financial needs of a company.

Credit Availability

The ease with which individuals or businesses can obtain loans or credit.