Which of the Following Is Useful for Forecasting the Required

question 213

Multiple Choice

Which of the following is useful for forecasting the required level of inventory? 1. Statistical modeling. 2. Information about seasonal variations in demand. 3. Knowledge of the behavior of different business cycles. 4. Pricing models linked to seasonal demand.

• A) 1 and 2 only
• B) 2 and 3 only
• C) 1, 2, and 3 only
• D) 1, 2, 3, and 4

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Definitions:

Own Capital

The personal wealth or assets invested in a business by its owners.

Long-Run

A period of time in which all factors of production and costs are variable, allowing for complete adjustment to change.

Market Entry

The process by which a company or business begins to participate in a new market, facing existing competitors and regulations.

Normal Return

The minimum profit necessary for a company to remain viable in its industry, often considered the opportunity cost of capital.