Budgets, forecasts & scenarios · Core

Bias

Also called: forecast bias

ELI5

Systematic over- or under-forecasting across observations or periods.

Used in conversation

“The headline changes once we calculate bias consistently.”

Pitch context

You will see “Bias” in financial models, budgets, board packs and investor materials when the discussion reaches budgets, forecasts & scenarios.

Why it matters: In budgets, forecasts & scenarios, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

Connected terms

Sources & evidence · 5

Direct term-level sources and supporting source families.