When making forecasts,increasing one variable usually means decreasing another.Which of the following are possible common trade-offs that should be considered in making such forecasts?
I.Product volume and prices.
II.Lower inventory and higher sales.
III.Higher growth and lower margin.
A)I and II.
B)I and III.
C)II and III.
D)All of the above.

Question

Quizplus · Accepted Answer

All the options listed are common trade-offs in business forecasting. Increasing product volume can lead to lower prices due to economies of scale or market saturation. Lower inventory levels can constrain sales if demand cannot be met, while higher growth often comes at the expense of lower margins due to increased costs or investment in market share.

When Making Forecasts,increasing One Variable Usually Means Decreasing Another