Bottom-Up Forecasting Provides the Advantage Of

question 1

Multiple Choice

Bottom-up forecasting provides the advantage of:

• A)forecasting coming from people who are not responsible for achieving the sales figure forecast.
• B)salespeople who tend to be optimistic and may overestimate sales.
• C)allowing forecast information to come from the people closest to the market.
• D)salespeople who may deliberately underestimate sales if their bonuses depend on exceeding the sales forecast.
• E)All of the above are advantages of bottom-up forecasting.

---

Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed, varying according to the amount of income or profit made.

Unrealized Gain

Represents the increase in value of an investment or asset that has not yet been sold for cash.

Commercial Substance

A concept in accounting that a transaction has commercial substance if it significantly changes the economic circumstances of the entities involved.

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task or business activity.