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Exhibit 5-5
AMR is a computer-consulting firm. The number of new clients that they have obtained each month has ranged from 0 to 6. The number of new clients has the probability distribution that is shown below.
-Refer to Exhibit 5-5. The standard deviation is
Finished Goods Units
Products that have completed the manufacturing process and are ready to be sold to customers.
Sales Budget
A detailed projection of anticipated sales, used for planning and managing resources in a business.
Optimistic Sales Budget
A sales budget that is prepared with the expectation of achieving the best-case scenario in sales volume and revenue.
Excessive Inventories
Situation where a company holds a larger quantity of inventory than necessary, which can tie up capital and increase holding costs.
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