The Projected Balance Sheet Forecasting Method Produces Accurate Results Unless

question 38

Multiple Choice

The projected balance sheet forecasting method produces accurate results unless which of the following condition(s) is (are) present?

• A) Fixed assets are "lumpy."
• B) Strong economies of scale are present.
• C) Excess capacity exists because of a temporary recession.
• D) Answers a,b,and c all make the projected balance sheet method inaccurate.
• E) Answers a and c make the projected balance sheet method inaccurate,but,as the text explains,the assumption of increasing economies of scale is built into the projected balance sheet method.

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Norm

An average, or standard, calculated from many individuals within a specific group or population.

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The ability to focus both eyes in a coordinated manner to get a single, three-dimensional image with depth perception.

Sensation

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