Which of the Following Is Not a Step in Forecasting

question 37

Multiple Choice

Which of the following is not a step in forecasting sales for a seasoned firm?

• A)forecast future growth rates based on possible scenarios and the probabilities of those scenarios
• B)attempt to corroborate the projected sales growth rates with industry growth rates and the firm's own past market share
• C)refine the sales forecast by using the sales force as a direct contact with both existing and potential customers
• D)consider the effects of changes in the firm's debt/equity blend on the sales forecasts

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Definitions:

Decrease Net Income

Any event or transaction that results in a reduction of the net income of a company.

Decrease In Assets

A reduction in the value or quantity of the resources owned by an entity.

Increase Accounts Payable

An action reflecting a rise in the amount owed by a company to its creditors for goods or services received but not yet paid for.

Accounts Payable

Short-term liabilities representing amounts owed by a business to suppliers or creditors for goods and services purchased on credit.