Forecasting Means Determining How Closely the Actual Revenue and Expense

question 252

True/False

Forecasting means determining how closely the actual revenue and expense results matched up with the predicted revenues and expenses.

Identify the challenges and solutions in measuring and applying support department costs.

Understand the process of applying overhead and production department costs to products.

Appreciate the role of cost drivers in the allocation of support department costs.

Grasp the essential features and limitations of activity-based costing (ABC) and other overhead application methods.

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Definitions:

Historical Data

Information and data points collected from past events which are used for analysis to recognize patterns, trends, and to predict future outcomes.

Repository

A central location where data is stored and managed.

Data Marts

A subset of a data warehouse that is focused on a particular subject or department within an organization, used to provide data for specific analyses.

Data Warehouses

Data warehouses are centralized repositories of integrated data from one or more disparate sources. They store current and historical data in one single place that are used for creating analytical reports.