If Additional Information Is Not Used When Forming an Optimal

question 8

Multiple Choice

If additional information is not used when forming an optimal forecast because it is not available at that time,then expectations are

• A)obviously formed irrationally.
• B)still considered to be formed rationally.
• C)formed adaptively.
• D)formed equivalently.

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Definitions:

Indirect Materials

Materials used in the production process that are not directly traceable to the finished product.

Activity-Based Costing

An accounting method that allocates costs to specific activities for more accurate product costing.

Accumulating

The process of gathering or amassing over a period of time.

Allocating

The process of apportioning costs or resources among departments, activities, or products.