Library / Management Accounting Principles Framework
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MA.5:2 - Problem

A forecast built by extending last period’s totals can conceal a changed mix, resource threshold or collection delay. A forecast negotiated as a target can conceal expected difficulty.

An elaborate model can still be unhelpful if its horizon is too short to act or its assumptions cannot be revised. Forecast the quantities and conditions that could change the receiving action, with enough detail to show the uncertainty that matters.