Case 8-1 As the Senior Accountant for a Manufacturing Company, You Have

question 90

Multiple Choice

Case 8-1
As the senior accountant for a manufacturing company, you have many years experience working with Excel and often provide help and tips on using Excel to the company's more junior accountants.
-This morning June, a junior accountant who works in the budgeting area, sends you an e-mail. She is preparing a manufacturing expenses forecast for the next five years based on the data from current year and the previous four years. She asks if Excel has a tool that can help her with forecasting forward five years. In your reply e-mail, you suggest to June that she can ____.

• A) ask Lou, in fixed assets accounting, because you have no idea what Excel tool would be useful
• B) create a chart based on the five years' available data and then add an appropriate trendline to the chart to predict values beyond the available data
• C) create a new worksheet in her workbook, copy the actual data to the new worksheet, and then use slicers to forecast forward five years
• D) just increment each year's forecasted expenses by ten percent; that should give forecasted values that will be close enough

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in the open market.

Assessed Valuation

The dollar value assigned to a property by a public tax assessor for the purposes of taxation.

Tax Rate

The percentage at which an individual or corporation is taxed.

Valuation Rate

A rate used to determine the current or projected worth of an asset or a company.