The Cyclical Component of a Time Series

question 2

Multiple Choice

The cyclical component of a time series

• A) is obtained by adding up the seasonal indexes.
• B) represents periodic fluctuations which reoccur within 1 year.
• C) represents periodic fluctuations which usually occur in 2 or more years.
• D) is obtained by adjusting for calendar variation.

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Definitions:

Direct Labour Hours Quantity

The total number of labor hours spent by workers who are directly involved in the production of goods or services.

Standard Cost

An estimated or pre-determined cost of performing an operation or producing a good, used in budgeting and pricing.

Actual Cost

The tangible and realized expense incurred for materials, labor, and overhead in the production of goods or services.

Standard Cost Systems

An accounting method that uses standard costs for direct materials, labor, and overhead to help managers control business costs.