Which of the following is TRUE of the long-term forecast?
A) It must go out no further than the next 5 years.
B) It can go out as little as 6 months.
C) It may be varied to reflect different overall strategic plans.
D) It identifies a firm's sales goals and specifies the costs required to meet those goals.
E) Its purpose is to show management where it may have cash shortages or surpluses.
Answer: C
Explanation: C) The long-term forecast is a prediction about how money will come in and go out of a firm during the next 1, 5, or 10 years. Long-term forecasts may be varied to reflect different long-range strategic plans.
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