Forecasting Demand Quiz

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Match the following forecasting applications with their primary usage:

Long-run corporate planning = Basis for long-run corporate planning Budget determination = Finance and accounting use forecasts to determine budgets and for cost control Hiring decisions = Personnel use forecasts to make hiring decisions and develop compensation and benefit packages Planning process = Enable managers to anticipate the future so they can plan accordingly

Match the following aspects of forecasts with their importance:

Expected level of demand = Important for determining the potential size of forecast error Degree of accuracy = Important for the degree of accuracy that can be assigned to a forecast Structural variation = Can be a function of some structural variation, such as a trend or seasonal variation Forecast error = Related to the potential size of forecast error

Match the following departments with their usage of forecasts:

Finance and accounting = Use forecasts to determine budgets and for cost control Personnel = Use forecasts to make hiring decisions and develop compensation and benefit packages Managers = Use forecasts to anticipate the future for planning accordingly Economics = Department involved in forecasting demand for products and services

Match the following statements with their association to forecasting:

<p>Forecasts serve as a basis for long-run corporate planning = Long-run corporate planning Forecasts play an important role in the planning process = Enable managers to anticipate the future so they can plan accordingly Forecast accuracy is a function of the abi = Related to the degree of accuracy that can be assigned to a forecast The expected level of demand can be a function of some structural variation = Related to the expected level of demand</p> Signup and view all the answers

Match the following uses of forecasts with their application:

<p>Cost control = Finance and accounting use forecasts to determine budgets and for cost control Compensation and benefit packages = Personnel use forecasts to make hiring decisions and develop compensation and benefit packages Corporate planning = Forecasts serve as a basis for long-run corporate planning Anticipating the future for planning = Managers use forecasts to anticipate the future for planning accordingly</p> Signup and view all the answers