Question: It is common to produce forecasts at multiple levels. For instance, we might forecast revenue at an aggregate level for pro-forma income statement creation, but

It is common to produce forecasts at multiple levels. For instance, we might forecast revenue at an aggregate level for pro-forma income statement creation, but we might forecast revenue at a detailed product level in order to create operational budgets for production.

When would you expect the difference between a high level and a granular forecast to be the greatest? What rules of thumb can you come up with to guide you to use the proper level of analysis when creating forecasts?

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