What is the primary assumption behind experience approach, Financial Management

Assignment Help:

What is the primary assumption behind the experience approach to forecasting?

The experience act to forecasting is based on the assumption that things will happen a certain way in the future for the reason that they happened that way in the past. For illustration, if it has forever taken you fifteen minutes to drive to the grocery store, then you will probably suppose that it will take you about fifteen minutes the next time you drive to the store. Likewise, financial managers often presume expenses, sales, or earnings will grow at certain rates in the future because they grew at that rate in the past.

 


Related Discussions:- What is the primary assumption behind experience approach

Demerits of pay back method, Demerits of Pay Back Method:- (i) It ignor...

Demerits of Pay Back Method:- (i) It ignores the Cash Flows after the Pay Back Period: - The main shortcoming of this method is that it completely ignores all cash inflows subs

Define the total quality management, a) An approx. 3% defect rate (i.e. 0.0...

a) An approx. 3% defect rate (i.e. 0.03 x 300m units) = 9m units per year. b) A apparent definition of Quality Assurance should be awarded, e.g. the management process of guaran

Who owns a credit union? explain, Who owns a credit union? Explain. Cr...

Who owns a credit union? Explain. Credit unions are owned by their members.  When credit union members place money in their credit union, they aren't technically "depositing"

Long and short dated volatility, Q. Long and short dated volatility? 1....

Q. Long and short dated volatility? 1. If an investor purchase long-dated volatility as well as sells short-dated volatility then the investor is expecting a decrease in the sh

Example on walters dividend model, Q. Example on Walters dividend model? ...

Q. Example on Walters dividend model? Example: - The following information is obtainable in respect of a firm: Capitalisation Rate (Ke)                     = 10% Earning

Explain the random walk model for exchange rate forecasting, Explain the ra...

Explain the random walk model for exchange rate forecasting. Can it be consistent along with the technical analysis? Answer:  The random walk model assumes that the current excha

Why the term objective is used for, Why the term objective is used for ...

Why the term objective is used for The term is used in a rather narrow sense of what a firm must attempt to achieve with its financing, investment and dividend policy decisions

Financial management, Financial Management: Financial management is, in...

Financial Management: Financial management is, in its most basic interpretation, the management of costs against revenue. Other management initiatives, such as marketing, are d

M.r, capital structure

capital structure

Show the statement of financial position, A friend is looking for advice on...

A friend is looking for advice on one of his investments, KER. KER manufactures stationery supplies, the entity appointed a new Chairman in 2008 and since then has been executed an

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd