An Internal Forecast Is Based on ________

question 62

Multiple Choice

An internal forecast is based on ________.

• A) a buildup, or consensus, of sales forecasts through a firm's own sales channels, adjusted for additional factors such as production capabilities
• B) the relationships between a firm's sales and certain economic indicators
• C) the prediction of a firm's sales over a given period through surveys sent to financial analysts
• D) developing the pro forma income statement to forecast sales and then express the various income statement items as percentage of projected sales

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Definitions:

Nash Equilibrium

A situation in game theory where each player’s strategy is optimal given the strategies of all other players, resulting in a stable outcome.

Marginal Cost

The cost of producing one more unit of a good or service, crucial for decision-making in business operations and pricing.

Cartel

An agreement among competing firms to control prices or production in a particular market, often with the goal of monopolizing it.

Marginal Cost

The increase in cost that arises from producing one additional unit of a good or service. It's a measure of the cost of producing one more unit of a good.