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Dafna1 [17]
3 years ago
12

(Forecast accuracy across horizons) You are a consultant to MedTrax, a large pharmaceutical company, which released a new ulcer

drug .3 months ago and is concerned about recovering research and development costs. Accordingly, MedTrax has approached yon for drug sales projections at 1- through 12-monthahead horizons, which it will use to guide potential sales force realignments. In briefing vou, MedTrax indicated that it expects your long-hori/on forecasts (e.g., 12-month-ahead) to be just as accurate as vour short-horizon forecasts (e.g., 1-month-ahead). Explain to MedTrax why that is not likely to be the case, even if you do the best forecasting job possible.
Business
1 answer:
Ne4ueva [31]3 years ago
4 0

It is impossible for long-term forecasts to be as accurate as short-term forecasts, because long-term forecasts are based on intuitive facts that may not happen.

Short-term forecasts are more accurate because they are based on how the financial market and trade are doing today, so it becomes easier to predict (through real data) the sales and revenues that a product will be able to produce in a few weeks. However, a country's market and economy situation can change in a matter of months, as these changes can be unpredictable, long-term forecasts are impaired and end up being less accurate.

We can see an example of this right now, through the economic crisis that is spreading all over the world, caused by the expansion of the coronavirus. This expansion was something completely premeditated and probably not considered in the companies' long-term forecasts.

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Kathleen is a member of the human resource department at Jade Corp. Setting a goal to enhance the firm's strategy, Kathleen work
Tasya [4]

Answer: HRM's responsibility to serve as a strategic partner

Explanation: an strategic partner is the person with whom a long-term agreement is reached for sharing of physical and/or intellectual resources in achievement of defined common objective.

4 0
3 years ago
During the fiscal year, a company had revenues of $400,000, cost of goods sold of $280,000, and an income tax rate of 30 percent
tatiyna

Answer:

$84,000

Explanation:

A company's net income can be determined by subtracting the cost of goods sold from the revenues to obtain the income before taxes and then multiply it by one minus the tax rate.

If revenues are $400,000 and cost of goods sold are $280,000 at a tax rate of 30%, net income for the year is:

N=(\$400,00-\$280,000)*(1-0.3)\\N=\$84,000

The company's net income for the year is $84,000.

8 0
4 years ago
In its first year of operations, Grace Company reports the following:
ANEK [815]

Answer:

D) $25,000.

Explanation:

The Accrual Basis of Accounting is the process in which income earned or expenses incurred are recorded at the time the transaction takes place, whether or not the cash has been exchanged.

Net Income is derived by subtracting Expenses from Revenue.

N.B. Prepaid Expenses are Advance Payments towards expenses and are a Balance Sheet Items and will not be recorded under Net Income Calculations until the Expenses are realized.

So, The Net Income can be calculated as follows;

Revenue $60,000

Less: Expenses $35,000

Net Income $25,000

Hence Option D will be correct answer.

#NETINCOME

#PREPAIDEXPENSES

#ACCRUALBASISOFACCOUNTING

5 0
3 years ago
Dukelow Corporation has two divisions: the Governmental Products Division and the Export Products Division. The Governmental Pro
Black_prince [1.1K]

Answer:

$28,600

Explanation:

Both sales and variable cost are dependent on the number of units sold.

The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income.

As such, the net operating income/loss is the difference between the sales and the total costs.

The company's net operating income (loss)

= $42,300 + $94,700 -  $108,400

= $28,600

8 0
3 years ago
individuals differ in risk aversion because of: group of answer choices differences in their insurance. moral hazard. adverse se
Gwar [14]

Individuals differ in risk aversion because of differences in income or wealth.

  • Risk aversion is the propensity of people to choose outcomes with low uncertainty over those with high uncertainty, even when the average outcome of the latter is equal to or higher in monetary worth than the more definite event. This tendency is shown in both economics and finance.
  • Risk aversion is the tendency to avoid danger. A risk-averse investor is one who prioritizes money preservation over the potential for a higher-than-average return. Price volatility and investment risk are the same.
  • If someone would rather take the risk and maybe receive nothing than accept a definite payment (certainty equivalent) of less than $50 (for instance, $40), they are considered to be risk averse. If they have no preference between the wager and a specific $50 payoff, they are risk neutral.

Thus the correct answer is d.

Refer here to learn more about risk aversion: brainly.com/question/8394406

#SPJ4

5 0
1 year ago
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