In industries where prices are changing or technology is advancing,forecasters should:
A)Use only financial drivers such as revenue.
B)Use only nonfinancial drivers such as productivity and volume.
C)Use both financial and nonfinancial drivers.
D)Use national real aggregates such as real GDP.

Question

Quizplus · Accepted Answer

In industries where prices are changing or technology is advancing, both financial and nonfinancial drivers should be used for forecasting. Financial drivers such as revenue can provide an insight into the company's financial performance, while nonfinancial drivers such as productivity and volume can give an idea of the company's operational efficiency. A combination of financial and nonfinancial drivers can provide a more comprehensive view of the company's performance and help in making accurate forecasts. Using only financial or nonfinancial drivers may not provide a complete picture of the company's performance or its future prospects.  National real aggregates such as real GDP may not be relevant or specific enough for making forecasts for a particular industry or company.

In Industries Where Prices Are Changing or Technology Is Advancing,forecasters