--%>
Assignment Help - homework help

Explain primary assumption behind approach to forecasting

Explain primary assumption behind the experience approach to forecasting?
The experience approach to forecasting is depending on the supposition that things will happen a certain way in the future since they happened that way in the past. For example, if it has always taken you fifteen minutes to drive to the grocery store, then you will maybe assume that it will take you about fifteen minutes the next time you drive to the store. Likewise, financial managers frequently assume sales, expenses, or earnings will grow at certain rates in the future since they grew at that rate in the past.

   Related Questions in Finance Basics

  • Q : Describe sunk cost Describe sunk cost?

    Describe sunk cost? Is it relevant while evaluating a proposed capital budgeting project? Describe. A sunk cost is a cash flow which has already occurred, or that will take place, whether a project is accepted or discarded. It is irrelevant wh

    		•
  • Q : Risk from perspective of the Capital

    Discuss risk through the perspective of the Capital Asset Pricing Model (CAPM).The Capital Asset Pricing Model, or CAPM, can be utilized to compute the appropriate required rate of return for an investment project specified its degree of risk as

    		•
  • Q : What is a Provision Provision : The

    Provision: The language in a bill or act which imposes necessities or constraints on actions or expenditures of the state. The provisions are frequently employed to constrain the expenditure of appropriations however it might also be employed to give

    		•
  • Q : Define Executive Order Executive Order

    Executive Order (EO): It is a budget document, issued by the Department of Finance, asking for the State Controller’s Office to make an adjustment in their accounts. The adjustments are usually authorized by the Budget Act provision language, Bu

    		•
  • Q : Explain Budget—Program or Traditional

    Budget—Program or Traditional: A program budget states the operating plan in terms of the costs of activities (that is, programs) to be undertaken to attain particular goals and objectives. A traditional (or object of expenses) budget expresses

    		•
  • Q : Frauds in banks Frauds in banks : In

    Frauds in banks: In today’s world all the financial institutions face a major problem of security in banking operations. Today it is a challenge in front of ever bank to secure its functioning and avoid the fraudulent practices in their banks. I

    		•
  • Q : What is Change Book System Change Book

    Change Book System: The system the Department of Finance employs to record all the legislative modifications (comprising changes stated by the Administration and approved by the Legislature) made to the Governor's Budget and the last actions on the bu

    		•
  • Q : Basic determinant of transactions

    Normal 0 false false

  • Q : How do flotation costs influence the

    Normal 0 false false

  • Q : Consumers advocates expressed concern

    Consumer's advocates expressed concern over such merger possibilities. Elucidate this statement.

    		•