Which of the Following Methods of Sales Forecasting Is the Most

question 7

Multiple Choice

Which of the following methods of sales forecasting is the most straightforward?

• A) jury of executive opinion method
• B) salesforce estimation method
• C) moving average method
• D) regression method
• E) disturbance handler method

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Definitions:

Fixed Costs

Costs that do not change with the level of output or sales, such as rent, salaries, and insurance premiums.

Cash Break-even Point

The point at which a business's cash inflows equal its cash outflows, excluding financing.

Degree of Operating Leverage

A ratio that quantifies the sensitivity of a company's operating income to its sales, demonstrating the impact of fixed and variable costs on profitability.

Fixed Costs

Fixed costs that stay the same no matter how much is manufactured or sold, including expenses for rent, employee salaries, and insurance charges.