Explain the Importance of Forecasting

question 2

Essay

Explain the importance of forecasting.What are the pros and cons of relying solely on past performance to predict future performance?

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Definitions:

Property Resources

Physical and intangible entities that generate economic value owned by individuals or companies.

Labor

The human effort, including both physical and mental work, used in the production of goods and services.

Total Fixed Cost

The sum of all costs that remain constant regardless of the level of production or business activity.

Output

The total amount of goods and services produced by a company, sector, or economy.