The Judgment Methods of Forecasting Are to Be Used for Purposes

question 8

Multiple Choice

The judgment methods of forecasting are to be used for purposes of:

• A) making adjustments to quantitative forecasts due to unusual circumstances.
• B) generating data for use in time-series approaches.
• C) providing the calculations necessary for quantitative forecasts.
• D) calculating the forecast error for quantitative methods.

---

Definitions:

External Reporting

The process of providing financial statements and other pertinent information to outside entities, such as investors, creditors, and regulatory agencies.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, showing how much profit a company makes on sales.

Net Income

The sum a company holds as profit once it has subtracted expenses and taxes from its aggregate revenue.

Net Sales

The amount of sales revenue left after deducting sales returns, allowances, and discounts.