This article throws light upon the top six theories of business forecasting. The theories are: 1. Theory of Economic Rhythm 2. Action and Reaction Approach 3. Sequence Method or Time Lag Method 4. Specific Historical Analogy 5. Cross-Cut Analysis 6. Model Building Approach. Theories of Business Forecasting: Theory of Economic Rhythm Action and Reaction Approach Sequence Method or Time Lag [...]
After reading this article you will learn about the proforma of balance sheet. The various items in the balance sheet are also to be projected by either of above two methods but both the methods are to be used in combination. For example: (a) Percent of sales method may be applied for all the assets except investments and miscellaneous expenses [...]
This article throws light upon the top six methods of business forecasting. The methods are: 1. Bottom-up Method 2. Top-down Method 3. Historical Method 4. Deductive Method 5. Joint Opinion Method 6. Scientific Business Forecasting. Business Forecasting: Method # 1. Bottom-up Method: Under this method various departments of an enterprise collect their own information/data and prepare their own forecasts. On [...]