How to create a driver base forecasting withcost centers?

Expert Solution

Driver based forecasting is the forecasting done based on the key activities which are done within a company. In this the operatonal activities are linked to calculate the expense and revenue for the company. Driver based forecastig can be done by first identifying the key business activity or business of the company and accordingly budget the revenue and expense based on the research of the business. The driver based must not be too complicated, it should be made with less of complexity that is we should create drivers for only those important data which impacts the profitability of the company, creatig drivers for unnecessary or small costs which has no impact on profitability will lead to wastage of time and cost in building the drivers. The data used for forecasting should be of use for the business and not just any data should be dump as this would create unnecessary confusion for designing the drivers. The drivers develop should be mostly limited to variable operating expenses of the company as for fixed expenses the drivers wont help because they would be of fixed nature and no help could be derived from drivers. The Business will have to identify key metrics which will drive cost and revenue. Then identify the costs which has direct impact and which has indirect impact. Identify the external and internal drivers that impact the revenue. Than based on different business models drivers can be developed.

jeff jeffy answered 2 years ago

Why should someone use driver based forecasting instead of account based forecasting

Create a code for A vector for forecasting and the value of alpha and provides an...

Create a code for A vector for forecasting and the value of alpha and provides an exponential smoothing forecast for the given dataset within R.

How do managers choose their Responsibility centers or how are managers assigned they Responsibility centers?

Forecasting is a key driver of virtually every design and planning decision made in both an enterprise and a supply chain.

Forecasting is a key driver of virtually every design and planning decision made in both an enterprise and a supply chain. Think of a business you recently purchased an item from. What role did forecasting play in your selected companies supply chain model?

Create a (partial) BST class and a driver program to test it. The tree node will...

Create a (partial) BST class and a driver program to test it. The tree node will store integers as the data/key field (single field). Note that you will need to guarantee there are no duplicates in your insert function (the tree should refuse to insert a duplicate key). Call your files “tree.h”, “tree.cpp” and “main.cpp”. In addition, draw a picture of your tree (see note about random values below) Public methods to include: Constructor Copy Constructor Overloaded Assignment Operator Destructor...

//Complete the incomplete methods in the java code //You will need to create a driver to...

//Complete the incomplete methods in the java code //You will need to create a driver to test this. public class ManagedArray { private int[] managedIntegerArray; //this is the array that we are managing private int maximumSize; //this will hold the size of the array private int currentSize = 0; //this will keep track of what positions in the array have been used private final int DEFAULT_SIZE = 10; //the default size of the array public ManagedArray()//default constructor initializes array to...

In this class add Comparable interface. In the driver program create a few objects and In...

In this class add Comparable interface. In the driver program create a few objects and In the driver program create a few objects and compare them . then create a list of those objects and sort them .A Quadratic is bigger than another Quadratic if it opens faster package pack2; /** * This is a program for defining a quadratic equation * @author sonik */ public class Quadratic { public int coeffX2 = 0; public int coeffX = 0; public...

Discuss how it should be evaluated whether the cost driver hours is the best cost driver...

Discuss how it should be evaluated whether the cost driver hours is the best cost driver for estimating the cost function.

java code Add the following methods to the LinkedQueue class, and create a test driver for...

java code Add the following methods to the LinkedQueue class, and create a test driver for each to show that they work correctly. In order to practice your linked list cod- ing skills, code each of these methods by accessing the internal variables of the LinkedQueue, not by calling the previously de?ined public methods of the class. String toString() creates and returns a string that correctly represents the current queue. Such a method could prove useful for testing and debugging...

28. Add the following methods to the ArrayBoundedStack class, and create a test driver for each...

28. Add the following methods to the ArrayBoundedStack class, and create a test driver for each to show that they work correctly. In order to practice your array related coding skills, code each of these methods by accessing the internal variables of the ArrayBoundedStack, not by calling the previously defined public methods of the class. a. String toString()—creates and returns a string that correctly represents the current stack. Such a method could prove useful for testing and debugging the class...

Question