Underestimating the sales in your forecast could have which of the following effects on the firm?
A) The firm could acquire too many fixed assets.
B) The firm would have higher costs for depreciation and storage.
C) The firm could lose market share to their competitors.
D) The firm would have too high of a total asset turnover.

Question

Quizplus · Accepted Answer

Underestimating sales in the forecast could lead to the firm not producing enough products to meet demand, resulting in lost sales and market share to their competitors. It would not necessarily result in the acquisition of too many fixed assets, higher costs for depreciation and storage, or too high of a total asset turnover.

Underestimating the Sales in Your Forecast Could Have Which of the Following