It Is Important to Question the Reliability of Forecasts Because

question 103

Multiple Choice

It is important to question the reliability of forecasts because

• A) if predictions are too low, a company like Motel 6 might build too many units and thus have a surplus of capacity.
• B) uncertainty is black and white, and therefore the gray areas are unimportant.
• C) underestimating uncertainty can lead to good competitive strategies.
• D) the growth new industries, such as that of telecommunications, cannot be predicted.

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Cost

Cost refers to the amount of money or resources expended to obtain a good or service, including production, materials, labor, and other expenses.

Markup Percent

The percentage increase applied to the cost price of goods to calculate their selling price.

Selling Price

The amount of money for which a good or service is sold to the buyer.

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