A Forecasting Method Used When There Is a Single Independent

question 15

Multiple Choice

A forecasting method used when there is a single independent variable (time) and a dependent variable (often demand) and the two variables are linearly related is?

• A) Linear trend forecast
• B) Simple linear regression forecast
• C) Multiple regression forecast
• D) Exponential smoothing forecast

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Definitions:

Support Department Allocation Rate

A rate used to allocate the costs of support departments to producing departments or directly to products based on relevant factors or usage measures.

Cost Drivers

Factors that cause the cost of an activity or product to change, such as production volume or raw material prices.

Support Department Cost

Expenses related to the functions that assist the direct operations or production departments of a business, such as human resources or maintenance.

Return on Investment

A metric for assessing the effectiveness or gains of an investment, determined by dividing the net earnings by the investment's expense.