The breakdown approach is particularly useful and reliable when forecasting for periods of six months or longer. The build-up approach becomes more attractive as the time frame gets shorter.

Question

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The breakdown approach is often used for long-term forecasting as it starts with a broad view and breaks it down into components, while the build-up approach is more detailed and suitable for short-term forecasts.

The Breakdown Approach Is Particularly Useful and Reliable When Forecasting