Forecasting Methods
Financial analysts utilize four basic types of forecasting techniques to project future sales, costs, and investment costs for a company. Although there are many commonly used quantitative budget forecasting tools, in this article we concentrate on the top four techniques: Straight-line, moving average, simple linear regression, multiple linear regression, and straight-line.
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You are aware that there are 150 units in stock at the moment (beginning inventory = SI), and ABC's marketing manager predicts that demand for the motor will be 240, 225, 265, 270, 260, and 275 units over the course of the following six months (M = 6). (D1, D2, D3, D4, and D5 respectively).
In six months, you wish to have 50 units in stock (ending inventory = EI) and have decided that you want to lower the average inventory level of various goods, including this one.
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Answer:
The answer is avg cost curve
Explanation:
The long-term result of entry and exit in a perfectly competitive market is that all firms end up selling at the price level determined by the lowest point on the avg cost curve
Answer:
opportunity cost = 30,000
Explanation:
The opportunity cost is the return in the alternative investment:
250,000 x 12% = 30,000 opportunity cost
The economic profit would be the lease less the opportunity cost
35,000 - 30,000 = 5,000 economic profit
<u>Note: If there was two or more alternatives, </u>we should pick the investment with the highest yield.
The ending balance of prepaid expense can be calculated using the following formula:
Ending balance = Beginning Balance + Debit entries – Credit Entries
We are given the following information:
Beginning Balance = $240,000
Total Debit entries = $110,000
Total Credit entries = $80,000
Hence,
Ending balance = 240000+110000-80000 = 270,000
The ending balance of prepaid expense shall be <u>$270,000
</u>
For the market to reach equilibrium, you would expect prices to rise.
<h3>What is a shortage?</h3>
A shortage exists when quantity demanded exceeds quantity supplied. This is because price is below equilibrium price. Equilibrium price is the price at which quantity demanded is equal to quantity supplied.
For a shortage to be resolved, prices would rise until equilibrium price is reached.
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