According to Predictive Ability Tests of Segment Reports

question 27

Multiple Choice

According to predictive ability tests of segment reports,

• A) it has clearly been proven that users use disaggregated information to make forecasts.
• B) forecasts based on line of business data are not as accurate as those based on geographic segments.
• C) forecasts based on segment earnings are more accurate than those based on segment sales.
• D) segment information is not useful for small firms.

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Definitions:

Law of Effect

A principle of behavior psychology suggesting that actions which produce rewards tend to be repeated, while actions that produce discomfort are avoided.

Positive Outcomes

Favorable, beneficial, or desirable results from actions, decisions, or situations.

Fundamental Attribution Error

Overestimates internal factors and underestimates external factors as influences on someone’s behavior.

Situational Factors

External conditions or events that influence an individual's behavior or outcomes, often beyond their control.