Which of the following is an effect of an over optimistic sales forecast?
A) High inventory turnover ratios
B) High costs for depreciation
C) Low costs for storage
D) High rates of return on equity
E) Low levels of plant and equipment

Question

Quizplus · Accepted Answer

An over optimistic sales forecast can lead to overproduction, resulting in excess inventory. This can increase costs for depreciation as more assets are held than needed.

Which of the Following Is an Effect of an Over