Which of the following is NOT one of the steps in the forecast of individual line items related to the income statement?
A)Determine the economic relationships that drive the model.
B)Model the business cycle.
C)Estimate the forecast ratios.
D)Forecast the drivers and multiply times the respective ratios.

Question

Quizplus · Accepted Answer

While modeling the business cycle is an important step in macroeconomic forecasting, it is not a step in the forecast of individual line items related to the income statement. The other three steps - determining economic relationships, estimating forecast ratios, and forecasting drivers and multiplying by respective ratios - are all crucial in forecasting individual line items such as revenue and expenses.

Which of the Following Is NOT One of the Steps