According to the Text, the Financial Staff's Role in the Forecasting

question 37

Multiple Choice

According to the text, the financial staff's role in the forecasting process is to:

• A) develop different assumptions for different departments.
• B) make sure that no biases are inherent in the forecasts.
• C) ensure that all the costs like sunk costs are included in the forecasting.
• D) set the sales price and coordinating marketing schemes for use by other departments.
• E) provide a rough estimate of cash flows as sophisticated techniques are available to check their accuracy.

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Definitions:

Straight Line Amortization

A method of systematically reducing the carrying amount of an intangible asset over its useful life in equal installments.

Equity Method

An accounting technique used by firms to assess the profits earned through their investment in other companies, by recording such investments at cost and periodically adjusting to reflect the share in profits or losses.

Impairment Loss

A financial accounting concept that represents the reduction in the recoverable amount of an asset below its carrying amount.

Ownership Interest

The proportion of shares or rights in a company held by an investor, indicating the level of control and financial stake.