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Hospitality Industry Managerial Accounting 8th Edition

Hospitality Industry Managerial Accounting (8th Edition)

Book Edition8th Edition
Author(s)Schmidgall
ISBN9780866124973
PublisherEduc. Inst. Of The American Hotel & Motel Assoc.
SubjectAccounting

Chapter 9, End of Chapter, Review Questions, Exercise 1

Page 466

Here is a tip:

Forecasting is the process of estimating the future outcome on the basis of past results.

Explanation

  • Implicit forecasting involves prediction supported with material facts, that is, actual results are compared with the expected outcome.
  • Explicit forecasting involves prediction that cannot be supported with material facts. It is usually the intuition of an individual based on the past experiences, knowledge, and beliefs. 

Verified Answer

  • Predicting a particular outcome that is bound to happen is known as implicit forecasting.
  • Predicting a particular outcome that is based on the past experiences, beliefs, and knowledge is known as the explicit forecasting. 
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