The correct answer is D. all of the above.
Forecasting helps the management in developing a business by providing them with information about future demand, which can be used to make decisions about production, marketing, and investment. It also helps them in providing adequate information for exercising effective control by providing them with information about actual performance against forecasts, which can be used to identify areas where corrective action is needed. Finally, it helps them in helping the management executives in effective coordination by providing them with a common understanding of the future, which can help them to make decisions that are aligned with the overall goals of the organization.
Here are some additional details about each of the options:
- Developing a business: Forecasting can help the management to develop a business by providing them with information about future demand. This information can be used to make decisions about production, marketing, and investment. For example, if a company forecasts that demand for its product is going to increase in the future, it can make decisions to increase production in order to meet that demand. It can also make decisions to increase marketing efforts in order to promote the product to a wider audience. And it can make decisions to invest in new equipment or facilities in order to be able to meet the increased demand.
- Providing adequate information for exercising effective control: Forecasting can help the management to exercise effective control by providing them with information about actual performance against forecasts. This information can be used to identify areas where corrective action is needed. For example, if a company forecasts that it will sell 100 units of its product in a month, but it actually sells only 80 units, then the management can use this information to identify the reasons for the shortfall and take corrective action.
- Helping the management executives in effective coordination: Forecasting can help the management executives in effective coordination by providing them with a common understanding of the future. This common understanding can help them to make decisions that are aligned with the overall goals of the organization. For example, if the management of a company has a common understanding that demand for its product is going to increase in the future, it can make decisions that are aligned with this goal, such as increasing production, marketing, and investment.