Which of the Following Is True About a Sales Forecast

question 72

Multiple Choice

Which of the following is true about a sales forecast?

• A)It is useful in predicting customer reactions to pre-launched products.
• B)It might not be suitable for use in situations that involve personal selling efforts.
• C)It is typically used by a marketing manager to budget selling expenses.
• D)It is typically used to implement customers' comments into product development.

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Definitions:

Direct Materials Price Variance

The difference between the actual cost of direct materials and the expected (or standard) cost, used in manufacturing and budgeting.

Direct Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, multiplied by the standard cost per unit of material.

Total Cost Variance

The overall difference between the actual costs incurred and the standard or budgeted costs, across all categories of expenses.

Variable Factory Overhead

Costs of manufacturing that vary with the level of production output, such as utility costs for machinery.