Which of the Following Is a Basic Consideration of Forecasting

question 17

Multiple Choice

Which of the following is a basic consideration of forecasting?

• A) Forecasts at lower levels are more accurate
• B) Once a forecast has been made, management has all it needs to plan for operations
• C) Managerial estimates are the best source for demand forecasts
• D) Downstream transactional data such as customer requisitions are the best source for projecting demand

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Definitions:

Predetermined Overhead Rate

A predetermined rate for allocating manufacturing overhead to products or job orders, calculated in advance based on anticipated costs and activity levels.

Job-Order Costing System

An accounting method used to assign product costs based on individual job orders, suitable for customized or unique products.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including costs related to indirect labor, materials, and factory operations.

Finishing Department

The section in a manufacturing process where products undergo final touches before being considered finished goods.