Which of the Following Would Tend to Decrease Forecast Accuracy

question 12

Multiple Choice

Which of the following would tend to decrease forecast accuracy?

• A) a reduction in demand variability
• B) a shortening of the forecast time horizon
• C) an attempt to forecast demand for a group of similar items rather than an individual item
• D) a change in the underlying causal system

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Definitions:

Balance Sheets

Financial statements that show a company's assets, liabilities, and equity at a specific point in time.

Fixed Assets

Long-term assets that a company uses in the production of its goods and services, such as buildings, machinery, and equipment, which are not expected to be converted into cash in the short term.

Investing Activity

Financial transactions related to an entity's investments in long-term assets, including property, plant, equipment, and securities.

Capital Stock

The total amount of common and preferred shares that a company is authorized to issue, representing the equity ownership of the company.