As an Analyst It Is Important When Projecting Sales to Make

question 10

Essay

As an analyst it is important when projecting sales to make estimates about future changes in sales volume.Compare how you might make estimates about future sales value for a company in a mature industry and one in a rapidly growing industry.

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Definitions:

Specialization

The process by which individuals, firms, or countries focus on producing a certain type of goods or services, often to achieve greater efficiencies or quality.

Diseconomies of Scale

The situation where a company or business grows so large that the costs per unit increase, leading to decreased efficiency.

Long-run Total Costs

The total costs associated with the production of a certain level of output when all inputs can be varied, emphasizing the period in which no costs are fixed.

Diseconomies of Scale

Diseconomies of scale occur when a company or business grows to such a point that the costs per unit increase, opposite of achieving cost efficiencies through expansion.