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The forecasts offer expected results based on historic facts. Investors and share holders around the world base their decisions on financial and economic forecasts. Public companies are special under constant pressure to perform according to budgeted expectations and forecasts. Failure to do so results in lower stock prices and financial difficulties. Forecasting comes under the broad subject of predictive accounting. The four main aspects of predictive accounting are:
? It improves projecting financial performance by monitoring whether processes are in control. In-control processes are predictable; out-of-control processes are unpredictable...
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