FP&A Professionals and Measuring Forecast Accuracy

This course covers the most common ways FP&A professionals can measure the accuracy of their financial forecasts.

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FP&A Professionals and Measuring Forecast Accuracy

What You Will Learn!

Identify financial forecast control measures.
Discover how to calculate mean absolute deviation (MAD for short) and Mean Absolute Percentage Deviation (MAPD).
Recognize 3 types of internal financial forecasts.
Discover how to calculate cumulative error and average error.

Description

Various studies show that increasing financial forecast accuracy will lead to higher profits, lower inventory levels and a higher share price. By how much varies by industry, time period forecasted, forecast measure, business model and a myriad of other factors that all play into the financial forecast itself.

With the speed of business constantly increasing, the ability to determine if financial forecast accuracy was due to better methods or external factors gets harder with every passing year.

This course will cover the most common ways financial planning and analysis professionals can measure the accuracy of their financial forecasts. Measures reviewed can be used at the corporate, division or product line level.