Recently, interest has materialized in the business, investment and governmental communities regarding the propriety, possibility and potential consequence of allowing or requiring publicly held corporations to routinely report income forecasts. The SEC, for example, has conducted rather extensive formal hearings to assess the attitudes, arguments and problems that might arise if accounting-based income projections or other forecasts such as expected capital expenditures are routinely included in annual financial statements (10-Ks) filed with the Commission. The SEC has tentatively concluded that corporations falling under its jurisdiction will be permitted, but presently not be required, to incorporate income projections [11]. Empirical study presupposes that public reports be decomposed into a number of properties and attributes. At least three important underlying income forecasting properties can be identified: feasibility, reliability and validity. Feasibility has two interrelated attributes: ability and capability. Forecasting ability specifies the forecasting error (accuracy and variability) that results from applying forecasting models or methods (mechanical and judgmental) to a set of data to create income projections. Forecasting ability can be established by ranking various models in terms of their forecasting error and variability. Elton and Gruber [2] used the ability criterion solely to decide whether security analysts produce more accurate income projections than those generated by mechanical methods. They concluded that there was no significant difference in terms of the accuracy of forecasting error between income projections of analysts and mechanical methods. Both ability and capability considerations must be considered. Capability, as used here, focuses on the annual incremental cost of deploying resources, such as additional man hours and so forth, to prepare, publish and revise annual income forecasts for investors and others. The significance of incremental capability costs seems to be one of the major concerns underlying the SEC's decision to permit, but not require, corporations to include income projections in required filings [10]. If the estimator is corporate management, then incremental capability costs that must be incurred to produce income budgets solely for internal use would be excluded from the analysis. Once accumulated the annualized incremental capability costs directly associated with income forecasts should be related to the measures of forecasting ability. The determination of feasibility is a form of cost/benefit analysis where cost references incremental forecasting capability, and benefit denotes the forecasting error and variability that results from a given forecasting model.