Explore BrainMass

Explore BrainMass

    Four forecasting variables in changing business conditions

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    What are four variables used in the forecasting portion of the budgeting process?

    What is the danger of forecasting based on history alone?

    How can you create a meaningful forecast that reflects the fact that business conditions are always changing?

    © BrainMass Inc. brainmass.com June 3, 2020, 9:53 pm ad1c9bdddf
    https://brainmass.com/business/business-management/budgeting-process-four-forecasting-variables-in-changing-business-conditions-204237

    Solution Preview

    What are four variables used in the forecasting portion of the budgeting process?

    1. Revenue (Sales)
    2. Overhead Expenses
    3. Cost of Goods Sold
    4. Interest and Depreciation

    What is the danger of forecasting based on history alone?

    With the current economy that is ever changing rapidly, history is sometimes not logically indicative of future performance. The ...

    Solution Summary

    Four forecasting variables in changing business conditions are determined in the budgeting process. The danger of forecasting based on history alone is analyzed.

    $2.19

    ADVERTISEMENT