COST ACCOUNTING
THE MASTER BUDGET
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is NOT one of the factors that is considered in sales forecasting?
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Industry trends
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Technological developments
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Price changes
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CEO’s input
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Explanation:
Detailed explanation-1: –Answer: c. The estimates from salespersons are not a method that can reasonably be used to forecast sales. One reason is that salespersons overestimate sales forecasts. Sales forecast methods are historical data through trends, flexible budgets, and others.
Detailed explanation-2: -While there are a wide range of frequently used quantitative budget forecasting tools, in this article we focus on four main methods: (1) straight-line, (2) moving average, (3) simple linear regression and (4) multiple linear regression.
There is 1 question to complete.