Discuss the importance of the sales forecast and items that influence its accuracy
What will be an ideal response?
Answer: All other budgets are based on information from the sales forecast.
The sales forecast is a challenge to predict because its accuracy depends on the ability to forecast the state of the general economy, changes in the industry, actions of the competition, and developments in technology. Each of these items affects individual products or product lines and are quantified and aggregated to obtain the sales forecast.
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If actual overhead is greater than applied manufacturing overhead, then manufacturing overhead is:
a. underapplied. b. overapplied. c. a loss on the income statement under "Other Expenses and Losses." d. considered a miscellaneous expense.
"Containerization" refers to a company's:
A) designing attractive product packaging that will help a product "sell itself." B) use of computer technology to keep a lid on ("contain") distribution costs. C) use of refrigerated warehouses for perishable products. D) use of standard-sized shipping boxes that can be transported in various ways. E) method of shipment by using oval size steel containers to fit different commodities.