Question

MARS Chocolate Company is making an estimate of the amount of candy it expects to sell during the Christmas season based on a specified level of marketing effort. The method MARS uses for forecasting sales includes all of the following except
a. executive judgments.
b. correlation analyses.
c. surveys of buyers or sales personnel.
d. time-series analyses.
e. financial ratios.

Answer 1

Answer:

The correct answer is (E)

Explanation:

MARS chocolate company will apply all the methods except financial ratios. Financial ratios cannot be used to forecast future sales in this specific situation. Financial ratios are used to analyse, and examine the current financial strength of an organisation, and it helps to compare the financial situation of a company. Financial ratios are used specifically for comparison between organisation’s current and preceding financials.