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There are some business cycle indicators that can help managers plan their activities for the next year. Forecasting in this way is important because it helps companies make decisions about how to allocate resources and develop plans for the future. Planning indicators includes dollar volume of sales, inventories, orders placed with suppliers and production capacity utilization rates as well as other economic factors such as consumer spending patterns. This type of forecasting is not always accurate but can be helpful in planning for the future. If a company’s resources are allocated correctly, it will have better success when economic cycles turn around again and they need to ramp up production. It also helps managers avoid taking on too much risk by overspending during boom times or underestimating their needs during downturns. A Forecast that Addresses the Business Cycle: Planning Indicators – There are some business cycle indicators that can help managers plan their activities for the next year. Forecasting in this way is important because it helps companies make decisions about how to allocate resources and develop plans for the future.- Planning indicators includes dollar volume of sales, inventories, orders placed with suppliers and production

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