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 ensures consistency and reduces the likelihood of individual biases and errors in forecasting. Allowing managers to establish their own forecasts (option A) may lead to inconsistencies and contradicting results. Establishing a standardized economic forecast (option B) may not always be accurate as economic conditions may vary from year to year. Extending the current forecast into the future (option D) may not necessarily address inconsistencies in the current forecast.

Forecasting Inconsistencies Can Be Minimized By