In general, any key managerial decision that is based on forecasted exchange rates should rely completely on one forecast rather than alternative exchange rate scenarios.

Question

Quizplus · Accepted Answer

It is generally recommended to use multiple exchange rate scenarios for forecasting and decision-making, as exchange rates are notoriously difficult to predict accurately. By considering multiple scenarios, managers can better assess the potential risks and opportunities associated with different exchange rate outcomes.

In General, Any Key Managerial Decision That Is Based on Forecasted