Where There Is a Strong Trend in Sales

question 41

Multiple Choice

Where there is a strong trend in sales:

• A) a trend adjusted forecast will give lower forecasting errors.
• B) naïve forecasting methods show surprising accuracy.
• C) percentage rate of change methods prove superior to trend forecast methods.
• D) two of the above, and they are a and c.
• E) two of the above, and they are b and c.

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Definitions:

Book Value

The net value of a company's assets minus its liabilities, often used to assess the value of a company's shares.

Common Stock

Stocks are financial instruments indicating partial ownership in a firm, granting the holder the right to vote on corporate matters and to earn from the company's earnings via dividends.

Net Income

The total earnings of a company after subtracting all expenses, including taxes, from its total revenues.

Purchased Goodwill

The premium paid over the fair value of identifiable net assets during the acquisition of a company, reflecting intangible assets like brand reputation or customer loyalty.