The Drawbacks of Which Forecasting Technique Include the Fact That

question 29

Multiple Choice

The drawbacks of which forecasting technique include the fact that judgments may not efficiently use objective data?

• A)a formal expert forecast
• B)the Delphi technique
• C)the nominal group technique
• D)an informal expert forecast
• E)managerial judgment

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Definitions:

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its expected useful life in equal annual amounts.

Operating Lease

A leasing agreement for short-term use of an asset, where the lessor retains risks and benefits of ownership.

Lessor

The owner of an asset that is leased to another party, referred to as the lessee.

Depreciated Historical Cost

The original cost of an asset minus accumulated depreciation, representing its value over time for accounting purposes.