Which of the following best describe the term forecasting risk.

A) The percentage change in operating cash flow relative to the percentage change in quantity sold.
B) The sales level that results in a zero NPV.
C) Costs that do not change when the quantity of output changes during a particular time period.
D) The possibility that errors in projected cash flows lead to incorrect decisions.
E) Opportunities that managers can exploit if certain things happen in the future.

Forecasting Risk

This involves the uncertainty or the potential for deviation from expected financial or operational performance outcomes, particularly in relation to predicting future business activities.

Operating Cash Flow

Indicates the amount of cash a company generates from its ongoing, regular business activities, highlighting its ability to cover operational expenses and invest in growth without external financing.

Projected Cash Flows

Estimated amounts of money that are expected to move in and out of a business over a future period.