Question

Forecasts can be made more accurate by: (choose all that apply)a.Using a shorter time horizon. b.Aggregating to product families or locations.c.Using multiple sources of information. d.Gathering data closer to the customer.

Answer 1

Answer:

All the options are correct.

Explanation:

The reason is that the forecasting is accurate when the duration for which the forecasting is done is for smaller period. Because the variables in the business environment does not changes suddenly whereas in the long term, the variables in the environments changes and these variables might not be considered in forecasting.

Furthermore, the forecasting relates to market research and market research is associated with the products differentiation, product family, location, substitutes in the location, etc.

Using multiple sources of information enables us to focus on the wider picture of the variables change. This helps Finance Managers to make more realistic assumptions and base his forecast on it.

Gathering data related to customer choices and likes is market research and this market research plays a vital role in the understanding the market position that the product can achieve in its life duration.

Answer 2

Answer:

The correct answers are letters "A", "B", "C", and "D".

Explanation:

Forecasting is the process of predicting future events in a company based on past and current information and analysis of market trends. Forecasts are more accurate for shorter than longer periods because of the amount of information to be considered from multiple sources. It is important to obtain data provided directly by customers or individuals close to their environments so the study will be performed based on their purchasing pattern, thus, managers will be able to make better decisions.