MARS Chocolate Company Is Making an Estimate of the Amount

question 83

Multiple Choice

MARS Chocolate Company is making an estimate of the amount of candy it expects to sell during the Christmas season based on a specified level of marketing effort.The method MARS uses for forecasting sales includes all of the following except

• A) executive judgments.
• B) surveys of buyers or sales personnel.
• C) time-series analyses.
• D) correlation analyses.
• E) financial ratios.

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Definitions:

Bid Price

The price at which a buyer is willing to purchase a security, currency, or commodity.

Discount Rate

It’s the interest rate applied for determining the current value of cash flows expected in the future through discounted cash flow analysis.

Depreciation Tax Shield

A reduction in taxable income that results from taking the depreciation expense as a tax deduction, thus reducing the firm's tax liability.

Corporate Tax Rate

The corporate tax rate is the percentage of a corporation's taxable income that it must pay to the government, which varies by country and sometimes within regions of countries.