Which of These Methods Is Least Likely to Be Used

question 6

Multiple Choice

Which of these methods is least likely to be used to forecast sales?

• A) Predictions by sales staff
• B) Extrapolation of past sales
• C) Field studies by market research staff
• D) Predictions by production employees

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Definitions:

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate if the stock is undervalued or overvalued.

Analytical Tools

Instruments or techniques used to analyze data or financial information, often for business or economic forecasting.

Financial Statement

A formal record of the financial activities and position of a business, individual, or other entity, typically including balance sheet, income statement, and cash flow statement.

Days' Sales Uncollected

A financial ratio that indicates the average number of days it takes a company to collect payment after a sale has been made.