Jonathan Works as a Manager in the Marketing Department of a Pharmaceutical

question 101

Multiple Choice

Jonathan works as a manager in the marketing department of a pharmaceutical firm. The time has come to develop sales forecasts for the next year. This year the company wants to increase the reliability of the sales forecast. Jonathan was asked to participate in this process because of his extensive market knowledge. He joins a group of other experts in the area. Individuals in Jonathan's group all submit their own forecasts. These forecasts are then averaged, and the results are given back to the group so they can refine them. The intent is to reach a consensus by working separately on these forecasts. What type of forecasting technique is this?

• A) Regression analysis
• B) Random factor analysis
• C) Delphi technique
• D) Executive judgment
• E) Time series analysis

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Definitions:

Committed Fixed Costs

Investments in facilities, equipment, and basic organizational structure that can’t be significantly reduced even for short periods of time without making fundamental changes.

Flexible Resources

Assets, such as labor or equipment, that can be adjusted or redirected in response to changing production or operational requirements.

Contribution Margin

The amount by which a product's selling price exceeds its total variable costs, representing the portion of sales revenue that contributes to covering fixed costs.

Variable Administrative Expense

Costs that vary directly with changes in business activity levels, like sales commissions or raw material costs.