Forecasting Techniques Generally Assume

question 62

Multiple Choice

Forecasting techniques generally assume:

• A)the absence of randomness.
• B)continuity of some underlying causal system.
• C)a linear relationship between time and demand.
• D)accuracy that increases the farther out in time the forecast projects.
• E)accuracy that is better when individual items, rather than groups of items, are being considered.

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Definitions:

Product Costs

Expenses directly incurred from the manufacturing process, including direct materials, direct labor, and manufacturing overhead.

Selling Price

The price at which a product or service is offered to the consumer.

Markup

The amount added to the cost of goods to cover overhead and profit when setting the selling price.

Job-Order Costing

An accounting method that assigns costs to specific production units or jobs, useful for customized orders.