ENTREPRENEURIAL PLANNING
OPERATIONS PLANNING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A realistic forecast gives the following advantages, EXCEPT?
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Unbiased Forecasts
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Top management understands the current business situation
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Efforts to increase the forecast according to the target
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Anticipate earlier the decline in demand
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Explanation:
Detailed explanation-1: –The forecast should be expressed in meaningful units.-The forecast should be in writing.-The forecast technique should be simple to understand and use.-The forecast should be cost-effective: The benefits should outweigh the costs.
Detailed explanation-2: -Demand forecasting also helps reduce risks and make better financial decisions that increase profit margins, cash flow, improve resource allocation, and create more opportunities for growth.
Detailed explanation-3: -While there are a wide range of frequently used quantitative budget forecasting tools, in this article we focus on four main methods: (1) straight-line, (2) moving average, (3) simple linear regression and (4) multiple linear regression.
There is 1 question to complete.