The Primary Difference Between Demand Management and Demand Forecasting Is

question 43

Multiple Choice

The primary difference between demand management and demand forecasting is:

• A)Forecasting is only possible when quantitative data are available.
• B)Demand management is proactive,while forecasting attempts to predict.
• C)A firm cannot execute both approaches simultaneously.
• D)One approach deals with uncertainty,while the other deals with known demand.

Understand the equilibrium concept in a competitive market.

Calculate economic profit or loss based on given financial data of a firm.

Recognize the significance of average total costs in a firm’s production decisions.

Understand the different basic market models and identify examples of each.

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Definitions:

Perpetual Inventory System

An accounting method where inventory levels are updated continuously as transactions occur.

Gross Method

An accounting practice where discounts on purchases or sales are recorded gross, without deducting any purchase or sales discounts.

Inventory

The collective sum of all products and materials possessed by a company intended for either resale or production purposes, encompassing raw materials, unfinished products, and completed items.

Ending Inventory

The cumulative worth of all stock, encompassing raw materials, items in the process of being made, and completed products that a company possesses at the conclusion of a financial period.