When the demand for one item can be used to forecast the demand for another item, the demand for the first item is called which of the following?
A) a seasonal index
B) a leading indicator
C) a forward commodity
D) a demand manager

Question

Quizplus · Accepted Answer

When the demand for one item can be used to forecast the demand for another item, the demand for the first item is called a leading indicator. Leading indicators are used to predict changes in the economy, such as future trends in consumer spending or employment rates, by analyzing current market conditions. They are often used to make decisions about investments or business operations. Seasonal indices are used to account for regular patterns of variation in demand due to calendar events (e.g. holidays). Forward commodities refer to goods that are traded on futures markets, and a demand manager is a job title for someone who oversees a company's forecasting and planning processes.

When the Demand for One Item Can Be Used to Forecast