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Author Question: MDX Sales Corp is expecting a 10 increase in sales next year. MDX has an inventory balance of ... (Read 55 times)

leo leo

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MDX Sales Corp is expecting a 10 increase in sales next year. MDX has an inventory balance of
  1,000,000 and uses the percent of sales forecasting method.
 
  Which of the following could explain
  why the inventory forecast of 1,100,000 might be too high?
  A) The growth in sales could be as high as 15.
  B) The company is going to change its depreciation method in the coming year.
  C) A fixed amount of inventory is required to do business, so inventory doesn't increase
  proportionally with sales.
  D) The current inventory balance of 1,000,000 is lower than usual because of a one-time end of
  year fire sale.

Question 2

Which of the following is NOT a motive for a corporation to hold cash balances?
 
  A) precautionary B) transactions C) speculative D) float


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isabelt_18

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leo leo

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Reply 2 on: Jul 10, 2018
Wow, this really help


peter

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Reply 3 on: Yesterday
Excellent

 

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