What Is the Main Problem with Using a Market Test

question 82

Multiple Choice

What is the main problem with using a market test as a forecasting tool?

• A) Difficult to interpret
• B) Expensive
• C) Inaccurate
• D) Unacceptable to consumers
• E) Overused

---

Definitions:

Perpetual Inventory System

An accounting method that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Merchandise Inventory Account

An account that records the value of goods that a retailer, wholesaler, or distributor has available for sale to customers at any given time.

Specific Identification

An inventory costing method where individual costs are assigned to specific items of inventory, often used for unique or high-value items.

Identical Units

Units of product that are the same in every aspect, often used in inventory management and costing methods.