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Which of the following most requires long -range forecasting (as opposed to short -range or medium-range forecasting) for its planning purposes? A) job scheduling B) production levels C) cash budgeting D) capital expenditures E) purchasing

Question

Which of the following most requires long -range forecasting (as
opposed to short -range or medium-range forecasting) for its
planning purposes?
A) job scheduling
B) production levels
C) cash budgeting
D) capital expenditures
E) purchasing

Which of the following most requires long -range forecasting (as opposed to short -range or medium-range forecasting) for its planning purposes? A) job scheduling B) production levels C) cash budgeting D) capital expenditures E) purchasing

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FletcherMaster · Tutor for 5 years

Answer

D) Capital Expenditures

Explain

## Step 1: <br />Understand the question. The question is asking us to identify which of the given options most requires long-range forecasting for its planning purposes. Long-range forecasting typically refers to predictions made for a period of more than one year into the future.<br /><br />## Step 2: <br />Analyze each option. <br /><br />A) Job scheduling typically requires short-range forecasting as it often involves planning for days or weeks ahead.<br /><br />B) Production levels can require short, medium, or long-range forecasting depending on the nature of the product and the industry. However, it is not the one that most requires long-range forecasting.<br /><br />C) Cash budgeting usually involves short to medium-range forecasting as it often deals with the cash flow of an organization in the near future.<br /><br />D) Capital expenditures, on the other hand, involve large investments in long-term assets such as property, plant, and equipment. These decisions require long-range forecasting because they have long-term implications for the organization's financial health and strategic direction.<br /><br />E) Purchasing usually involves short to medium-range forecasting as it often deals with the procurement of goods and services necessary for the organization's immediate operations.<br /><br />## Step 3: <br />Based on the analysis, capital expenditures (option D) is the one that most requires long-range forecasting for its planning purposes.
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