Underestimating the Sales in Your Forecast Could Have Which of the Following

question 99

Multiple Choice

Underestimating the sales in your forecast could have which of the following effects on the firm?

• A) The firm could acquire too many fixed assets.
• B) The firm would have higher costs for depreciation and storage.
• C) The firm could lose market share to their competitors.
• D) The firm would have too high of a total asset turnover.

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Definitions:

Transfer of Possession

The act of handing over control or ownership of an item or property from one party to another.

Property Rights

The legal rights to own, use, and dispose of assets including real property and intellectual property.

Purchaser

An individual or entity that buys goods or services for personal use, commercial use, or resale.

Industry Canada

A department of the Canadian government formerly responsible for economic development, innovation, and scientific research, now part of Innovation, Science and Economic Development Canada.