What is Forecasting? write down the features, lements, advantages, limitations & Types of Forecast?
Answers
Forecasting means " a systematic economic and rational way of making decisions today the will affect tomorrow ".
Elements for Forecasting process :
- prepare the groundwork.
- establishing future business
- comparing actual with estimated results
- refining the forests
Features of Forecasting :
- involvement of future events
- depends upon past and present events
- happening of future events
- make us Forecasting techniques
Advantages of Forecasting :
An organization uses a variety of forecasting models to assess possible outcomes for the company . The methods used by an individual organization will depend on the data available and the industry in which organization operates . the primary advantage of forecasting is that it provides business with valuable in formation that the business can use to make decision about the future of the organization.
Disadvantage of Forecasting :
It is not possible to accurately forecast the future . Because of the qualitative nature of forecasting , a business can come up with different scenarios depending upon the interpretation of data .