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.

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Definitions:

AFC (Average Fixed Cost)

The fixed costs (expenses that do not change with the level of production) divided by the quantity of goods or services produced, typically decreasing as production increases.

Marginal Cost

The cost increase that comes with producing an additional unit of a product or service.

Marginal Revenue

The heightened income realized from the sale of one more unit of a good or service.

Marginal Cost

The price involved in creating one more unit of a specific good or service.