Which of the Following Methods Tells Whether the Forecast Tends

question 69

Multiple Choice

Which of the following methods tells whether the forecast tends to be too high or too low?

• A)MAD
• B)MSE
• C)MAPE
• D)decomposition
• E)bias

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Definitions:

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to products or job orders, based on a planned amount of activity.

Machine-Hours

A measure of production output or activity based on the number of hours machines are run, used in allocating machine-related costs to products.

Variable Manufacturing Overhead

Costs in the manufacturing process that fluctuate with the level of production output, such as utilities or materials.

Machine-Hours

A measure of production time, representing the number of hours machines are operated in the production process.