Which Type of Operation Is Most Dependent on the Accuracy

question 99

Multiple Choice

Which type of operation is most dependent on the accuracy of sales forecasts?

• A)assemble-to-stock operations  
• B)assemble-to-order operations  
• C)make-to-order operations  
• D)make-to-stock operations

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Definitions:

Contra-asset

A contra-asset account is a type of asset account where its balance is a negative figure that offsets the balance of its corresponding asset account.

Liability

A financial obligation or debt owed by a company to another entity, which is expected to be settled through the transfer of assets or services.

Inventory

Consists of all the goods a company has in stock that are ready to be sold, including raw materials, work-in-progress, and finished goods.

Expense

A cost or charge that a company incurs through its operations aimed at generating revenue.