The unit purchasing requirements for a retail entity are calculated as:
A) forecast sales in units - desired ending inventory in units + beginning inventory in units.
B) forecast sales in units - desired ending inventory in units - beginning inventory in units.
C) forecast sales in units + desired ending inventory in units + beginning inventory in units.
D) forecast sales in units + desired ending inventory in units - beginning inventory in units.

Question

Quizplus · Accepted Answer

The unit purchasing requirements are calculated by adding the forecast sales in units to the desired ending inventory in units and then subtracting the beginning inventory in units. This ensures that the entity has enough inventory to meet sales and desired stock levels.

The Unit Purchasing Requirements for a Retail Entity Are Calculated