Which of the Following Is Not a Consideration in the Preparation

question 59

Multiple Choice

Which of the following is not a consideration in the preparation of a sales budget or sales forecast?

• A) General economic trends
• B) Anticipated marketing or advertising plans
• C) Issuance of the current year's financial statements
• D) Anticipated price changes in both purchasing costs and sales prices

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Definitions:

Allocation of Cost

The process of assigning a cost or group of costs to one or more cost objectives, such as projects, functions, or departments.

Straight-Line Depreciation

An arrangement for apportioning the financial burden of a tangible asset equally over its viable years.

Residual Value

The projected value remaining for an asset at the conclusion of its operational lifespan.

Estimated Life

The projected period over which an asset is expected to be useful in the operations of a business for depreciation purposes.