A Forecasting Method That Predicts Sales Based on Relationships Between

question 191

Multiple Choice

A forecasting method that predicts sales based on relationships between past sales and other variables is called

• A) regression analysis.
• B) customer forecasting surveys.
• C) the Delphi technique.
• D) random factor analysis.
• E) time series analysis.

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Definitions:

Variable Cost

Costs that vary directly with the level of production output, such as raw materials and labor costs directly involved in production.

Units

Measurements or quantities of a product or service that are produced or sold.

Sold

The past tense of sell, indicating that a transaction where goods were exchanged for money has been completed.

Conversion Cost

The combination of direct labor and manufacturing overhead expenses, representing the costs required to convert raw materials into finished products.