Select the One Best Answer from the Following

question 20

Multiple Choice

Select the one best answer from the following:

• A) deseasonalized data should be used for forecasting
• B) seasonalize the base forecast to predict actual demand for future periods
• C) actual sales should only be compared on a month-to-month basis
• D) a and b are best
• E) b and c are best

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Definitions:

Economic Order Quantity

A formula used in operations management for determining the optimal order size that minimizes total inventory costs.

Current Ratio

A financial metric used to assess a company's liquidity by dividing current assets by current liabilities, indicating its ability to pay short-term obligations.

Break-even Point

The break-even point is the point at which total costs equal total revenue, meaning that a business or project is neither making a profit nor suffering a loss.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.