Question

Although it is difficult to make accurate forecasts, the initial outlays and subsequent costs of large projects are forecast with great accuracy, but revenues are more uncertain and large errors are not uncommon. T or False? Explain why

Answer 1

True, the accurate forecasts of the initial outlays and the subsequent costs of projects is very difficult because making assessment of the technical requirements and subsequent requirements and deciding on the repair parts is not possible with cent-per-cent accuracy. As future is uncertain, so all technical changes that can take place in the project is also uncertain to assess.

The future production under the project and sales is quite more difficult because acceptance of the project's products by the market is very uncertain.

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