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Four forecasting variables in changing business conditions

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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?

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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.

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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 ...

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