Multiple Choice
Which of the following is the recommended approach to forecast COGS,and why?
A) Forecast COGS based on revenue growth,since it provides flexibility in the model.
B) Forecasting COGS based on the forecast ratio of COGS to sales allows for possible improvements in COGS relative to sales.
C) Forecast COGS based on revenue growth since COGS and revenues have a direct relationship.
D) Forecasting COGS based on inventory is recommended because inventory prices and COGS are correlated.
Correct Answer:
Verified
Correct Answer:
Verified
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