Which of the Following Is the Best Statement About the General

question 12

Multiple Choice

Which of the following is the best statement about the general principles of forecasting?

• A) forecasts are more accurate for larger groups of items
• B) forecasts are more accurate for nearer periods of time
• C) every forecast should include an estimate of error
• D) all of the above are general principles of forecasting
• E) none of the above is a general principle of forecasting

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Definitions:

Inventory Turnover

A ratio indicating how many times a company's inventory is sold and replaced over a specific period.

Inventory

Refers to the goods and materials a business holds for the purpose of resale or production.

Cost Of Goods Sold

Costs that are directly related to the production of goods a company sells, encompassing expenses for labor and materials.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, highlighting the profitability of a company.