An Overly Optimistic Sales Budget May Result in

question 17

Multiple Choice

An overly optimistic sales budget may result in

• A) increases in selling prices late in the year.
• B) insufficient inventories.
• C) increased sales during the year.
• D) excessive inventories.

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Definitions:

Product Quality

The characteristics of a product that determine its ability to satisfy stated or implied needs.

Marginal Resource Cost

The additional cost incurred by acquiring one more unit of a resource.

Imperfectly Competitive Market

A market structure characterized by a few sellers, product differentiation, and barriers to entry, where firms have some control over market prices.

Real Wages

Wages adjusted for inflation, reflecting the true purchasing power of an individual’s income over time.