All of the Following Are True Regarding the Key Principles

question 63

Multiple Choice

All of the following are true regarding the key principles of forecasting except:

• A) Financial statement forecasts need not be comprehensive.
• B) Forecasts should not manifest wishful thinking.
• C) Financial statement forecasts must be internally consistent.
• D) Financial statement forecasts must rely on assumptions that have external validity.

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Definitions:

Gray Market Activities

The trade of legal goods through unauthorized, unofficial, or unintended distribution channels.

Product Standardization

The process of setting uniform characteristics for a particular product or products, which can help reduce costs and increase quality.

Weight-To-Volume Ratio

A measure that compares the weight of an object to its volume, often used in shipping and material science.

Supply-Chain Management

The oversight of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer.