Use the information below to answer the following questions.
Jackson Bottle Yard, a recycling glass company, has supplied the following information in relation to their actual sales in 2015 and planned sales for the first quarter of 2016. Past records indicate that expected receipts collected from debtors will be: 60 per cent in the month of sale
40 per cent in the month following the sale
-In real-world studies on budgeting, it has been found that:
A) inaccurate forecasting has no effect on share price.
B) most companies hit their forecast targets.
C) forecasting is a waste of a company's time.
D) companies with accurate forecasts are rewarded by higher share prices.

Question

Use the information below to answer the following questions.
Jackson Bottle Yard, a recycling glass company, has supplied the following information in relation to their actual sales in 2015 and planned sales for the first quarter of 2016.  Past records indicate that expected receipts collected from debtors will be: 60 per cent in the month of sale
40 per cent in the month following the sale
-In real-world studies on budgeting, it has been found that:
A) inaccurate forecasting has no effect on share price. 
B) most companies hit their forecast targets. 
C) forecasting is a waste of a company's time. 
D) companies with accurate forecasts are rewarded by higher share prices.

Quizplus · Accepted Answer

Companies with accurate forecasts are rewarded by higher share prices.

Use the Information Below to Answer the Following Questions