Past Behavior of Demand Is Indicative of Its Future Behavior,therefore

question 50

Multiple Choice

Past behavior of demand is indicative of its future behavior,therefore past demand data can be used to construct demand forecasts.This statement is the underlying principle of the ______ method.

• A)causal
• B)market research
• C)time series analysis
• D)Delphi

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Definitions:

Collection Time

The typical duration a company waits to collect payments from its clients following a sale.

Lockbox System

A service offered by banks to process payments quickly by having those payments mailed directly to a secure post-office box, from which the bank collects and deposits into the company's account.

Cheque Clearing

The process by which banks settle transactions made by cheques, transferring funds from the issuer's account to the payee's account.

Total Collection Time

The total time taken from issuing an invoice to the receipt of payment from customers.