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Lesson 6 - Forecasting

The document discusses forecasting and the roles of operation managers and management accountants in forecasting. Forecasting helps management cope with uncertainty and estimate the future based on past and present data and experience. Managers and accountants have different but complementary roles, with accountants developing budgets and managers planning for possible future events based on those budgets. Forecasting generates planning and helps businesses make decisions.

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JM Reynancia
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70 views1 page

Lesson 6 - Forecasting

The document discusses forecasting and the roles of operation managers and management accountants in forecasting. Forecasting helps management cope with uncertainty and estimate the future based on past and present data and experience. Managers and accountants have different but complementary roles, with accountants developing budgets and managers planning for possible future events based on those budgets. Forecasting generates planning and helps businesses make decisions.

Uploaded by

JM Reynancia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

In forecasting, it helps the management to cope and estimate the uncertainty of the future that

is based on the data from the past and present analysis. It is also depending on the management’s
experience, knowledge and judgement in order to implement production strategies. The main thing in
forecasting is that it is not about guessing or predicting an event but it is a statement of the future.

Operation Manager and Management Accountant have the same goals but have different roles
and contribution in forecasting. It is the starting point in determining the resources to the determined
the specific budget needed of a business. It involves the planning where Manager is able to take the
possible future event into account and will depends on the budgets that is developed by the
Accountant. It is the key in forecasting in which generates the planning process and decide the future
action. An organization achieved through performance of a certain activities. In order to achieve this,
Manager and Accountant provides Decision Making to evaluate the alternative strategies that will be
applying for future events. Also Management Accountant plays a vital role in forecasting in which
measures the performance where to monitor and control the cost and efficiency of the process of an
organization and Manager will be the one to know the forecasting process and take an actions in order
to overcome those challenges. By setting targets for strategic business Management Accountant needs
to be accountable in order to effectively achieve those targets and Operation Manager will be
responsible for the business units while giving consideration for factors not within the control.

Forecasts helps the business to deal with problems and easily think of an strategies and actions
and help them to reach important decisions. It will depend on the data that is available from the analysis
of the past and present events in which the organization operates.

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