Errors in the sales forecast can be offset by similar errors in costs and income forecasts. Thus, as long as the errors are not large, sales forecast accuracy is not critical to the well-being of the firm.

Question

Quizplus · Accepted Answer

Sales forecast accuracy is critical because it directly impacts decision-making, inventory management, and financial planning. Errors in sales forecasts can lead to significant issues, such as overproduction or stockouts, which cannot always be offset by errors in cost and income forecasts.

Errors in the Sales Forecast Can Be Offset by Similar