Which One of the Following Is Most Useful for Measuring

question 76

Multiple Choice

Which one of the following is most useful for measuring the bias in a forecast?

• A) cumulative sum of forecast errors
• B) standard deviation of forecast errors
• C) mean absolute deviation of forecast errors
• D) percentage forecast error in period t

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Definitions:

Purchase Orders

Official documents sent by a buyer to a seller specifying products, quantities, and agreed prices for products or services.

Cash Purchases

Transactions where goods or services are paid for with cash at the point of sale, without utilizing credit.

Inventory Without A Bill

Recording inventory items received before the actual invoice or bill is received to account for stock levels accurately.

Enter The Bill

The process of recording a bill or invoice received from a vendor in the accounting system for tracking and payment purposes.