BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

FINANCIAL ACCOUNTING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Which forecasting method would best be utilized by a business who has data on the past five fiscal periods and wants to forecast their next fiscal period?

A	Take the lowest fiscal period
B	Average all fiscal periods
C	Take the highest fiscal period
D	Average the two highest fiscal periods

Explanation:

Detailed explanation-1: -Quantitative forecasting models are ideal for businesses with at least three years’ worth of past data. You’ll want at least three years so you can determine probable results. From here, your experts can accurately analyze data patterns and predict trends.

Detailed explanation-2: -Exponential forecasting: Thus exponential smoothing takes into account the forecast error of the previous period, for the forecast of the next period.

Detailed explanation-3: -Passive Demand Forecasting Passive demand forecasting doesn’t require statistical methods or analysis of economic trends; it simply involves using past sales data to predict future sales data.

Detailed explanation-4: -1. Straight-line Method. The straight-line method is one of the simplest and easy-to-follow forecasting methods. A financial analyst uses historical figures and trends to predict future revenue growth.

There is 1 question to complete.