what is overcast in financial accounting
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An overcast is a forecasting error that occurs when estimating a metric,such as future cash flows, performance levels or production.Overcasting is when the estimated value turns out to be above the realized value.
yahoshuva94:
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Here's your answer,
An overcast is a forecasting error that occurs when estimating a metric, such as future cash flows, performance levels or production. Overcasting is when the estimated value turns out to be above the realized value.
Overcasting could be indicative of aggressive estimates or aggressive accounting. Consistent overcasting should be investigated. Company employees could be overpromising to please upper management. Or the company might be hoping to keep current shareholders and might be trying to attract additional shareholders with aggressive forecasts.
Regards,
Hope it helped you...
Here's your answer,
An overcast is a forecasting error that occurs when estimating a metric, such as future cash flows, performance levels or production. Overcasting is when the estimated value turns out to be above the realized value.
Overcasting could be indicative of aggressive estimates or aggressive accounting. Consistent overcasting should be investigated. Company employees could be overpromising to please upper management. Or the company might be hoping to keep current shareholders and might be trying to attract additional shareholders with aggressive forecasts.
Regards,
Hope it helped you...
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