________ forecast is based on the relationships between the firm's sales and certain economic indicators.

Question

Quizplus · Accepted Answer

An external forecast is based on external factors such as the economy, industry trends, and market conditions. A sales forecast is focused solely on predicting the company's future sales. An internal forecast uses data from past performance and internal operations to predict future outcomes. A pro forma forecast is a financial statement projection based on assumptions and estimates of future financial results. Therefore, the most appropriate option based on the given description is B (an external forecast).

________ Forecast Is Based on the Relationships Between the Firm's