Which Is the Recommended Way to Forecast Items Such as Inventory

question 1

Multiple Choice

Which is the recommended way to forecast items such as inventory and accounts payable?

• A)Inventory and accounts payable should be forecasted based on revenues,since most other working capital items are forecasted based on revenues.
• B)Inventory and accounts payable should be forecasted based on COGS,because these items are more correlated with input prices than with output prices.
• C)Inventory and accounts payable should be the plug once total operating assets and operating liabilities have been forecasted.
• D)Inventory and accounts payable should be forecasted based on total assets,as these tend to scale together.

---

Definitions:

Separation Anxiety

An emotional condition experienced by individuals, especially children, due to separation from familiar people or environments.

Babysitter

An individual who temporarily cares for children on behalf of the children's parents or guardians.

Developmental Scientist

A researcher specializing in the study of how humans change and grow over the course of their lives, from infancy through old age.

Brain Development

The process involving growth and reshaping of the brain from infancy through adulthood, influenced by genetics, environment, and experience.