If a Company Gets the Sales Forecast Wrong, Which of the Following

question 8

Multiple Choice

If a company gets the sales forecast wrong, which of the following budgets will also be incorrect?

• A)Direct labor budget
• B)Production budget
• C)Budgeted income statement
• D)All of these answer choices are correct.

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Definitions:

Outward Shift

A movement of a curve away from the origin on a graph, typically indicating an increase in supply or demand.

Comparative Advantage

The proficiency of an individual or group in executing a certain economic function more effectively than other tasks.

Lowest Cost

The scenario in which the expenditure required to achieve a certain objective or to purchase goods and services is minimized.

Opportunity Cost

The act of sacrificing possible gains from alternative decisions when one is made.