The Delphi Method of Forecasting Is Useful When

question 134

Multiple Choice

The Delphi method of forecasting is useful when:

• A) judgment and opinion are the only bases for making informed projections.
• B) a systematic approach to creating and testing hypotheses is needed and the data are usually gathered by sending a questionnaire to consumers.
• C) historical data are available and the relationship between the factor to be forecast and other external or internal factors can be identified.
• D) historical data is available and the best basis for making projections is to use past demand patterns.

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Definitions:

Producing Division

The producing division refers to a department or segment within a company responsible for the production of goods or services.

Decentralised Organisation

A type of organizational structure where decision-making is distributed among various levels and departments rather than being concentrated at the top.

Centralised Organisation

An organizational structure where decision-making and authority are concentrated at the top levels of management.

Responsibility Accounting

An accounting system that collects, summarizes, and reports financial information related to the responsibilities of individual managers.