Question

Which value rolls up the hierarchy to the manager for both customizable and collaborative forecasts?

Answer 1

Answer:

A. Expected revenue

Explanation:

The expected revenue determines the production quantity.  Thus, making the expected revenue the most important figure for making forecasts.  This is why the production budget is not prepared until the sales forecast had been obtained.  It is the sales forecast that will determine how much to produce or purchase.  It also allies with that customer service mantra that "customer is king."  Without sales, an organization cannot survive.  Sales bring in the needed funds for improving financial performance and position.  Even though, a company incurs costs first before making the sales, but in the order of hierarchy, sales determines everything, including every cost.  All costs should be tied to sales.