If Actual Demand for a Period Was 110 and the Forecast

question 69

Multiple Choice

If actual demand for a period was 110 and the forecast for that period was 105, what is the forecast error for the period?

• A) 5
• B) -5
• C) 0
• D) Forecast error cannot be determined by the information given

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Definitions:

Electricity Costs

The financial charges for the consumption of electrical energy by a business, forming part of its operating expenses.

Factory Supervisor

A managerial position responsible for overseeing the daily operations of a manufacturing facility, ensuring production targets are met efficiently.

Mixed Cost

A cost composed of a fixed and a variable component and changes in total in response to activity level changes.

Variable Cost

Financial obligations that shift depending on production or sales levels, notably materials and workforce expenses.