Since Even the Best Sales Forecast Can Be Wrong,the Small

question 104

True/False

Since even the best sales forecast can be wrong,the small business owner should prepare three forecasts-optimistic,pessimistic,and most likely.

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Definitions:

Variable Input

A variable input is one whose amount can be adjusted in the short term to either raise or lower output levels.

MRP

Acronym for Marginal Revenue Product, which measures the addition to total revenue resulting from the sale of the output produced by one more unit of a variable input.

Haircuts

Often used as an example in economics, referring to a service that cannot be stored, saved, or inventoried, and must be consumed at the point of production.

MRP

Material Requirements Planning, a planning and inventory control system used to manage manufacturing processes.