Briefly describe the method of historical analogy used in forecasting
What will be an ideal response?
In historical analogy, a forecast is obtained through a comparative analysis with a previous situation. For example, if a new product is being introduced, the response of similar previous products to marketing campaigns can be used as a basis to predict how the new marketing campaign might fare.
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Information pertaining to Yekstop Corp.'s sales revenue is presented below:
-------------November December January Cash sales: $96,000$125,000 $78,000 Credit sales: 288,000 450,000 234,000 Total sales: $384,000 $575,000 $312,000 Management estimates that 4% of credit sales are eventually uncollectible. Of the collectible credit sales, 65% are likely to be collected in the month of sale and the remainder in the month following the month of sale. The company desires to begin each month with an inventory equal to 75% of the sales projected for the month. All purchases of inventory are on open account; 30% will be paid in the month of purchase, and the remainder paid in the month following the month of purchase. Purchase costs are approximately 60% of the selling prices. Budgeted cash payments in December for November inventory purchases by Yekstop Corp. are:
Adjudicated mental incompetence is a universal defense that can be raised against holders and HDCs
Indicate whether the statement is true or false