Forecasting inconsistencies can be minimized by:
A)allowing managers to establish their own forecasts.
B)establishing a standardized economic forecast to be used year in, year out.
C)generating current economic forecasts that are used throughout the firm.
D)extending the current forecast into the future.

Question

Quizplus · Accepted Answer

Generating current economic forecasts that are used throughout the firm can minimize forecasting inconsistencies because it ensures that everyone is using the same information and assumptions to make their forecasts. This helps to reduce variations in forecasts and increase accuracy. Allowing managers to establish their own forecasts (A) can lead to inconsistencies and biases, while a standardized economic forecast (B) may not account for specific factors that affect the particular business. Extending the current forecast into the future (D) may not reflect changes in economic conditions that can affect the business over time.

Forecasting Inconsistencies Can Be Minimized By