_____ Attempts to Provide Management with Accurate Forecasts of Trends

question 38

Multiple Choice

_____ attempts to provide management with accurate forecasts of trends that relate to external changes in geographic areas where the firm is currently doing business or considering setting up operations.

• A) Environmental scanning
• B) Functional scanning
• C) Tactical scanning
• D) Operational scanning

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Definitions:

Market Value

The prevailing market rate at which a commodity or service is traded.

Retail Inventory Method

An accounting technique used to estimate inventory value by converting retail prices to cost prices.

Cost To Retail Ratio

A method to estimate the value of ending inventory and cost of goods sold based on the ratio of cost to the retail price of goods.

Ending Inventory

The cost of items on offer at the close of an accounting term.