About This Chapter
Business & Financial Forecasting - Chapter Summary and Learning Objectives
In this chapter, we will go over some of the basics of business and financial forecasting. You'll explore the forecasting process and why it's important. Some of the other topics that will be covered in the lessons include:
- Different models and methods of business forecasting
- Steps involved in business forecasting
- Application of ratios and other mathematic information to financial forecasting
- How bias and errors affect forecasting
|What is Forecasting in Business? - Definition & Models||Evaluate the different types of models that are used in forecasting in business.|
|Business Forecasting: Methods & Analysis||Consider how business forecasting methods are applied and the correct way to analyze them.|
|Important Ratios in Financial Forecasting||Analyze ratios related to components such as leverage, productivity and value.|
|Accuracy & Error in Financial Forecasting||Explain forecast accuracy and the different types of error that can affect a model.|
1. What is Forecasting in Business? - Definition & Models
Being able to predict what is coming next is an invaluable skill for a business. In this lesson, we look at how businesses use forecasting to make the best possible plans for the future.
2. Business Forecasting: Methods & Analysis
Businesses create financial forecasts for a number of variables, such as sales volume. In this lesson, you'll learn about the qualitative and quantitative methods used to prepare forecasts.
3. Important Ratios in Financial Forecasting
Financial ratios are a quick way to review a company's financial performance and compare it with others. This lesson will review a few select financial ratios to show how they are developed and how they can be used to forecast future performance.
4. Accuracy & Error in Financial Forecasting
After reading this lesson, you will see just how much impact a financial forecast has on the potential growth of a company. Learn how inaccuracies develop and why forecasting too much or too little can have negative consequences.
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Other chapters within the Accounting 302: Advanced Accounting course
- Business Ownership Types
- Key Accounting Concepts
- Journals & Ledgers in Accounting
- Accounting Equations & Formulas
- Financial Statements, Balance Sheets & Income Statements
- Analyzing Financial Statements
- Financial Statement Ratios
- Accounting for Inventory
- Accounting for Depreciation
- Accounting for Compensation, Taxes & Liabilities
- Adjustments & Closing Entries
- Corporate Accounting
- Departmentalized Accounting
- Taxation for Corporations
- Required Assignments for Accounting 302
- Studying for Accounting 302