Which of the Following Is a Method of Demand Forecasting

question 65

Multiple Choice

Which of the following is a method of demand forecasting that is particularly suitable for international marketers?

• A) Probabilistic forecasting
• B) Analogy
• C) Simulation
• D) Extrapolation
• E) Scenario building

Understand the importance and application of fixed and variable costs in project analysis.

Calculate the degree of operating leverage (DOL) for a project.

Determine break-even points in various scenarios including cash break-even and financial break-even.

Interpret the significance of operating cash flows in project evaluation.

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Definitions:

Profitability

The ability of a company to generate earnings above its costs and expenses over time.

Margin of Safety

The difference between actual or projected sales and the break-even point; measures the risk of not covering fixed costs.

Liabilities to Stockholders' Equity

A ratio that measures the amount of liabilities a company has compared to its shareholders' equity.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in using its assets to generate sales or revenue; it is calculated by dividing net sales by average total assets.