Given Forecast Errors of -1, 4, 4, and -3, What

question 119

Multiple Choice

Given forecast errors of -1, 4, 4, and -3, what is the mean absolute deviation?

• A) 1
• B) 3
• C) 4
• D) 8
• E) 12

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Definitions:

Product Cost Method

An accounting technique that assigns all costs associated with production to the products, including materials, labor, and overhead.

Variable Cost Method

An accounting method that allocates costs to goods produced based on variable costs, which change with the level of production.

Markup Percentage

Markup percentage is a financial ratio that calculates the difference between the cost of a good or service and its selling price, expressed as a percentage over the cost.

Variable Cost Method

An accounting strategy where costs vary in relation to production or sales levels, focusing on costs that change with output.