In Describing Forecasting, Which of the Following Statements Is False

question 50

Multiple Choice

In describing forecasting, which of the following statements is false?

• A)Even when forecasting errors are small, they can have a large impact when used for determining large aggregates in the economy such as GDP.
• B)Current economic conditions are given more weight than forecasts in formulating policy.
• C)Forecasting errors are usually very minor since forecasting is a nearly perfect science.
• D)Forecast errors can be fairly large.

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Definitions:

Industrial Products Division

A subsection of a company focused on the production and sale of goods used in industrial and commercial applications.

Transfer Price

The price charged for goods or services transferred between departments or divisions within the same company.

Variable Cost

A cost that varies directly with the level of output or production, such as raw materials or direct labor costs.

Division Delta

A specific division, unit, or segment within a larger organization, identified by the designation "Delta."