A Writer Estimates It Will Take Three Months to Generate

question 25

Multiple Choice

A writer estimates it will take three months to generate spiffy documents to accompany a seminal work in operations management.He grossly underestimates the time required and misses his deadline by two months.This estimate was:

• A)Objective and accurate.
• B)Subjective and accurate.
• C)Objective and inaccurate.
• D)Subjective and inaccurate.

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Definitions:

Budgeted Sales

The projected amount of sales revenue that a company plans to achieve in a specific period, based on market analysis and company goals.

Ending Inventory

The monetary amount of merchandise on hand for sale when an accounting cycle concludes, established by the initial stock plus purchases less the expenses of goods sold.

Production Budget

An estimate of the total units to be produced in a given period, factoring in expected sales and inventory requirements.

Cash Budget

A financial plan that estimates incoming and outgoing cash flows over a specific period to ensure liquidity and solvency.