Molly Stewart runs financial analysis and forecasts for her company WirelessT Inc, which offers cell phone and cable services to customers. He due to her company's aggressive promotion, as well as other customers dropping the service because of competitive deals. She is concerned What methodology can Molly use to develop financial forecasts?
Molly should use four sales forecast scenarios and then use these in ratio analysis so that she can provide management with a range of sales
Molly should provide costs of goods figures for next year as an average of cost of goods for the last 4 years; this way the forecast will be in the
Since General and Administrative Expense costs are related to sales, she should not worry about the variation in sales, as the same variation
Molly should use the ratio analysis to forecast total cost of goods, since variation in some of the components will compensate for variation in.