The First,and Most Critical,step in Constructing a Set of Forecasted

question 15

True/False

The first,and most critical,step in constructing a set of forecasted financial statements is the sales forecast.

---

Definitions:

Direct Materials

Raw materials that can be directly attributed to the production of specific goods.

Assembly Department

A section of a manufacturing facility where components are put together to form a finished product.

Manufacturing Overhead

All manufacturing costs other than direct materials and direct labor, not directly attributable to a specific product.

Weighted-Average Cost Method

An inventory costing method that assigns a weighted average cost to each unit of inventory on hand.