The Inputs Used in Building Financial Planning Models Include

question 53

Multiple Choice

The inputs used in building financial planning models include

• A) financial statements, sales forecasts, and a firm's investment and financial policy decisions.
• B) pro forma statements, sales forecasts, and macroeconomic variables.
• C) pro forma statements, sales forecasts, and financing decisions.
• D) None of these

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Definitions:

Lost Sales

Revenue that was not earned due to an inability to meet customer demand or because the customer chose a competitor's product.

Customer Dissatisfaction

Negative feelings or a state of disappointment experienced by customers when products or services fail to meet their expectations.

Absorption Costing Income

The profit figure calculated under absorption costing, including all costs of production – both fixed and variable – in product costs, affecting reported income.

Overproduction

The production of goods in quantities exceeding the demand, often leading to excess inventory and potential financial losses.