All of the Following Are Reasons for the Importance of Forecasting

question 16

Multiple Choice

All of the following are reasons for the importance of forecasting and budgeting,EXCEPT:

• A) requires the organization to think about what is happening in the markets
• B) sets specific strategic objectives for the various divisions and departments within the organization
• C) sets specific operational parameters for the various divisions and departments within the organization
• D) requires managers to make decisions related to resource allocation, when measured against specific outcomes
• E) become benchmarks/targets against which actual results can be measured

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Definitions:

Description

The act of providing details or characteristics of someone or something to give a clear picture.

Organization

pertains to a structured group of people with specific roles and duties working together to achieve common goals or objectives, often in a coordinated and systematic manner.

Direction

Guidance or supervision on how to perform tasks or the course along which something moves or is aimed to move.

Cognitive Dissonance Theory

A psychological theory suggesting that individuals experience discomfort when holding contradictory beliefs and are motivated to reduce this dissonance by changing their attitudes or behaviors.