Which of the Following Is the Recommended Approach to Forecast

question 4

Multiple Choice

Which of the following is the recommended approach to forecast COGS,and why?

• A)Forecast COGS based on revenue growth,since it provides flexibility in the model.
• B)Forecasting COGS based on the forecast ratio of COGS to sales allows for possible improvements in COGS relative to sales.
• C)Forecast COGS based on revenue growth since COGS and revenues have a direct relationship.
• D)Forecasting COGS based on inventory is recommended because inventory prices and COGS are correlated.

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Definitions:

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Given the authority, power, or confidence to make decisions, take action, and be responsible for the outcomes.

Expert Systems

Artificial intelligence programs that use expert-level knowledge to solve problems in a specific domain, mimicking the decision-making ability of a human expert.

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Devices that operate autonomously to collect data or detect specific conditions, often used in industrial and home applications.

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The attempt to duplicate the features, appearance, and characteristics of a real system, usually via a computerized model.