Which of the Following Is True

question 80

Multiple Choice

Which of the following is true?

• A) Forecast errors cannot be negative.
• B) Forecast errors are negative when the forecasted rate exceeds the realized rate.
• C) Absolute forecast errors are negative when the forecasted rate exceeds the realized rate.
• D) None of these are correct.

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Definitions:

Multiple Production Department Factory Overhead Rate

A method used to allocate factory overhead costs to products based on specific rates for different production departments.

Finishing Department

The final phase in the manufacturing process where products are completed, inspected, and prepared for sale.

Product A

A specific item or service offered by a company, designated as "Product A" for identification or classification purposes.

Multiple Production Department Factory Overhead Rate

Different rates used for allocating factory overhead costs to products based on the department in which those costs are incurred.