When Using ________,A Company Starts the Year with a Budget

question 100

Multiple Choice

When using ________,a company starts the year with a budget based on revenue and cost assumptions made at that point but then reviews economic performance every month or every quarter to see whether the budget needs to be modified as the year progresses.

• A) hedge-based budgeting
• B) scenario planning
• C) rolling forecasts
• D) product segmentation
• E) judgmental forecasting

---

Definitions:

Least-Squares Regression

A statistical method to determine a line of best fit by minimizing the sum of squares of the distances of data points from the proposed line.

Sum Of Squares

A statistical measure that quantifies the variation or dispersion of a set of data points, by calculating the sum of the squared differences from the mean.

Best-Fitting Line

A line through a scatter plot of data points that best expresses the relationship between those points.

Observed Errors

The discrepancies between measured values and their true, expected, or theoretical values.