The Sales Forecasts Used in Financial Planning

question 85

Multiple Choice

The sales forecasts used in financial planning

• A) are developed using a variety of techniques.
• B) are generated within the firm.
• C) utilize macroeconomic variables as input.
• D) All of the above are true.

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Definitions:

Cost Structure

The composition of a company's costs, including fixed and variable costs, that affects its profitability.

Variable Costs

Costs that vary directly with the level of production output or service delivery.

Mixed Costs

Costs comprising both constant and fluctuating elements, altering in aggregate with activity levels yet not in direct correlation.

Per Unit Basis

Calculations or measurements made by dividing the total by the number of units to find the amount corresponding to a single unit.