Some of the Disadvantages of the Sales Force Composite Forecasting

question 5

Multiple Choice

Some of the disadvantages of the sales force composite forecasting method are that 1-the approach suffers from subjectivity. 2-the estimates could be biased because of the natural tendencies of individual salespeople to be optimistic or pessimistic. 3-the degree of bias introduced into the forecast would probably increase if the forecast were linked to the salesperson's performance record.

• A)1
• B)2
• C)3
• D)1 and 2
• E)1, 2, and 3

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Definitions:

Financing Activities

Activities reported in the statement of cash flows that illustrate changes in the size and composition of the equity and borrowings of a company.

Bonds Issued

Long-term debt securities issued by corporations or governments to raise funds, promising to pay back with interest.

Statement of Cash Flows

A financial document summarizing the total cash inflows from operational activities and external investments a company gets, alongside the cash outflows for business operations and investments over a specific period.

Sale of Equipment

This transaction involves disposing of business equipment, typically recorded as a gain or loss in the financial statements, depending on the sale price versus book value.