Identify and Discuss Zero-Base Forecasting and Bottom-Up Forecasting

question 36

Essay

Identify and discuss zero-base forecasting and bottom-up forecasting.

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Definitions:

Raw Materials Production Needs

The quantity and type of raw materials required to meet production targets based on the designed product and manufacturing processes.

Raw Materials Cost

The expense associated with acquiring the unprocessed materials required in the manufacture of products.

Cash Collected

The total amount of money received from sales, services, or other business activities.

Accounts Receivable Balance

The total amount of money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.