One Type of Demand Fluctuation Is Caused by Random Variation

question 31

Multiple Choice

One type of demand fluctuation is caused by random variation. What is random variation?

• A) errors in inventory management
• B) errors not caught by using exponential smoothing
• C) a development that cannot normally be anticipated
• D) failure to properly execute the SO&P process plan

---

Definitions:

Accounts Receivable

Represents money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Accounts Payable

Liabilities of a business that are due to be paid to creditors within a short period, usually one year.

General Journal

A primary accounting record used to track all financial transactions of a business, entered in chronological order.

Office Supplies

Consumable items used in an office setting, such as paper, pens, and office equipment.