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.

View Complete Question

Related Questions in Finance Basics

Q : What is Indirect Costs Indirect Costs :

Indirect Costs: The costs which by their nature can’t be readily related with a particular organization unit or program. Similar to general administrative expenses, indirect costs are dispersed to the organizational unit(s) or programs that bene

Q : Making capital structure decisions In a

In a perfect capital market, what advice would you give a corporate financial manager on making capital structure decisions? Justify your advice. How and why would your advice change as real world capital market imperfections are introduced?

Q : Difference among proforma financial

Describe difference among pro forma financial statements and a cash budget? Depict why pro forma financial statements are not utilized to forecast cash needs. Pro forma income statements deal along with revenues and expenses which are not alway

Q : Describe the sales forecasting procedure

Describe the sales forecasting procedure.This is a group effort. Usually sales and marketing personnel provide assessments of demand and the competition. Usually, production personnel provide estimates of manufacturing capacity and other product

Q : Bonds and coupon rate Staind, Inc., has

Staind, Inc., has 8 percent coupon bonds on the market that have 15 years left to maturity. The bonds make annual payments. If the YTM on these bonds is 9 percent, what is the current bond price?

Q : Define the term Program Cost Accounting

Program Cost Accounting (PCA): The level of accounting which identifies costs by activities executed in achievement of a purpose in contrast to the traditional line-item format. The aim of accounting at this level is to generate cost data adequately a

Discover Q & A

Leading Solution Library

Avail More Than 1458794 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1931165
Asked

3,689

Active Tutors

1458794

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment