Which of the Following Forecasting Methods Uses Executive Judgment as Its

question 102

Multiple Choice

Which of the following forecasting methods uses executive judgment as its primary component for forecasting?

• A) Historical analogy
• B) Time series analysis
• C) Panel consensus
• D) Market research
• E) Linear regression

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Definitions:

Total Expenses

The sum of all costs and expenses incurred by a business during a specific period, including operating and non-operating expenses.

Budgeting

The process of creating a plan to spend your money, allocating estimated income towards expense categories.

Activity Variance

The difference between the budgeted or planned level of activity or production and the actual level achieved.

Direct Labor

The labor costs directly attributed to the production of goods or services, such as wages paid to assembly line workers.