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:

Using Resources

The process of employing available assets and materials to achieve desired goals and objectives.

Unattainable Point

A situation or position in economic models that cannot be reached given the current resources and technology.

Trading

The act of buying, selling, or exchanging goods, services, or financial assets in a market.

Inward Shift

A movement towards the origin of a supply or demand curve, indicating a decrease in supply or demand.