One Use of Short-Range Forecasts Is to Determine

question 108

Multiple Choice

One use of short-range forecasts is to determine:

• A)planning for new products.
• B)capital expenditures.
• C)research and development plans.
• D)facility location.
• E)job assignments.

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Definitions:

Collection Time

The average period a company takes to collect payments owed by its customers.

Lockbox Fee

A charge by banks for the service of collecting payments through a secured post office box and processing them for the account holder.

Money Market Securities

Short-term financial instruments, typically with high liquidity and very low risk, used by individuals and corporations to manage cash.

Average Daily Cost

The average cost incurred by a business or an individual on a daily basis.