All of the Following Factors Can Influence the Reliability of the Sales

question 55

Multiple Choice

All of the following factors can influence the reliability of the sales forecast except:

• A) proposed advertising.
• B) action of competitors.
• C) a rise in general interest rates.
• D) a slow-down in the collection of cash from debtors.

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Definitions:

Net Present Value

Net Present Value (NPV) is a financial metric used in capital budgeting to analyze the profitability of an investment or project, calculated by discounting all cash flows to the present value.

Operating Costs

Expenses associated with the day-to-day functions of a business.

Depreciation Tax Shield

A reduction in taxable income resulting from the ability to deduct depreciation expenses, thereby lowering the tax liability for a business.

CCA Deduction

Stands for Capital Cost Allowance deduction, a tax deduction in certain jurisdictions that allows businesses to deduct the depreciated value of capital assets.