A Proactive Approach to Forecasting Views Forecasts as Probable Descriptions

question 71

True/False

A proactive approach to forecasting views forecasts as probable descriptions of future demand, and requires action to be taken to meet that demand.

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Definitions:

Responsibility Centre

A unit within an organization, such as a department or division, whose manager is accountable for specific financial and operational outcomes.

Controllable

Refers to costs or factors within a business that can be managed or influenced by decisions made by the company.

Uncontrollable

A term referring to factors or costs that cannot be directly controlled or influenced by decisions in the short term.

Uncontrollable Costs

Costs that cannot be influenced or changed by the actions of a specific individual or management level within the organization.