Regarding forecasting,which of the following statements is NOT true?
A) Operations managers need sales forecasts to plan future production.
B) Financial managers need estimates of future sales revenues,disbursements & capital expenditures in order to plan effectively.
C) Forecasts of credit conditions are needed to plan the cash needs of the firm.
D) Public administrators and managers of NFP corporations need not forecast,since they need not make a profit.
E) Both c and d are false.

Question

Regarding forecasting,which of the following statements is NOT true?
A) ​Operations managers need sales forecasts to plan future production.
B) ​Financial managers need estimates of future sales revenues,disbursements & capital expenditures in order to plan effectively.
C) ​Forecasts of credit conditions are needed to plan the cash needs of the firm.
D) ​Public administrators and managers of NFP corporations need not forecast,since they need not make a profit.
E) ​Both c and d are false.

Quizplus · Accepted Answer

Public administrators and managers of NFP corporations still need to forecast in order to plan and allocate resources effectively, even though they may not be focused on making a profit. Therefore, statement D is not true. Statement E is also false because statement C is true – forecasts of credit conditions are indeed necessary to plan the cash needs of the firm.

Regarding Forecasting,which of the Following Statements Is NOT True