Which of the Following Is Not a Benefit of Forecasting

question 22

Multiple Choice

Which of the following is not a benefit of forecasting future losses?

• A) Better estimate of insurance costs
• B) More appropriate budgeting of financial impact of the losses
• C) Better selection of optimal risk-handling techniques
• D) Better monitoring of trends and impact of change in trend

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Definitions:

Seasonal Sales

Sales fluctuations that occur at certain times of the year, often due to changes in weather, holidays, or other seasonal factors.

Cash Disbursements

The outflow of cash to pay expenses, purchase assets, or repay debts.

Floor Plan

In finance, it refers to a type of short-term loan used by retailers to purchase high-cost inventory such as automobiles. In architecture, it's the scale diagram of the arrangement of rooms in a building.