Predictable variability is change in demand that cannot be forecasted.

Predictable variability is A: change in demand that can be forecasted. B: change in demand that cannot be forecasted. C: change in demand that has been planned. D: change in demand that has been scheduled. E: all of the above

Safety capacity is defined as capacity used to satisfy demand that is lower than forecasted.

When considering loaning funds to a firm, creditors are most interested in the: A: number of employees that the firm has. B: procedure used to settle grievances. C: forecasted levels of revenues and expenses. D: prime rate financing

Which of the following is not a limitation of fundamental forecasting? A: uncertain timing of impact B: forecasts are needed for factors that have a lagged impact. C: omission of other relevant factors from the model. D: possible change in sensitivity of the forecasted variable to each factor over time. E: none of the above

It can be inferred from the passage that ______. A: if dams were built in river basins, the downstream ecology remained the same B: governments have to be responsible for the changes caused by the constructions of dams C: the results of controlling water flows by engineers can be well forecasted D: a dam can bring economical advantages for almost a century

Which of the following statements is FALSE? A: Many projects use a resource that the company already owns. B: When evaluating a capital budgeting decision, we generally include interest expense. C: Only include as incremental expenses in your capital budgeting analysis the additional overhead expenses that arise because of the decision to take on the project. D: As a practical matter, to derive the forecasted cash flows of a project, financial managers often begin by forecasting earnings.