Why is it important for organizations to accurately estimate the demand for a good or service? A. To decrease the fixed costs of production B. To plan production, marketing, and budgets C. To determine potential sales D. To determine where the upward slope on the demand curve will be E. To determine what to charge

Question

Giana Bradley

Business

27 June, 22:58

Why is it important for organizations to accurately estimate the demand for a good or service? A. To decrease the fixed costs of production B. To plan production, marketing, and budgets C. To determine potential sales D. To determine where the upward slope on the demand curve will be E. To determine what to charge

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Answers (1)

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Alena · Answer 1

B. To plan production, marketing, and budgets

Explanation:

A company needs to know accurately the demand for a good or service because it has to determine what kind of customer it is and plan the marketing accordingly. Additionally, that information will be valuable in planning plan its production volume. And afterward, with that information in hands, knowing fixed and varied costs, marketing costs and others, plan the budget accordingly. Pricing, fixed costs, demand slope, and potential sales will be determined by other factors that can include but are not limited to demand estimation.