Which of the Following Is Not Considered One of the Steps

question 79

Multiple Choice

Which of the following is not considered one of the steps to developing the decomposition method?

• A)compute seasonal indices using CMAs
• B)deseasonalize the data by dividing each number by its seasonal index
• C)find the equation of the trend line using the deseasonlized data
• D)forecast for future periods using the trend line
• E)add the seasonal index to the trend forecast

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Definitions:

Direct Materials Cost

The cost of raw materials that can be directly attributed to the production of specific goods or services.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing a more accurate reflection of costs.

Direct Labor-Hours

Direct labor-hours are the total hours worked by employees directly involved in the manufacturing process.

Direct Materials Cost

The cost of raw materials used to produce a product, which are directly attributable to the product.