All of the Following Are True About Qualitative Forecasting Methods

question 1

Multiple Choice

All of the following are true about qualitative forecasting methods except

• A) They generally involve the use of expert judgment to develop forecasts.
• B) They assume the pattern of the past will continue into the future.
• C) They are appropriate when past data on the variable being forecast are not applicable.
• D) They are appropriate when past data on the variable being forecast are not available.

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted; a measure of profitability.

Total Cost of Goods Sold

The sum of all costs directly involved in producing or purchasing products sold by a company during a given period.

High-low Method

A technique used to estimate fixed and variable components of costs by analyzing the highest and lowest levels of activity.

Utilities Cost

The expenses incurred for utilities consumed by a business, such as electricity, water, and gas.