One Requirement for Using the Linear Trend Multiplicative Method Is

question 35

Multiple Choice

One requirement for using the linear trend multiplicative method is ______.

• A)tracking signals should be used
• B)time series demand data should exhibit a linear trend with seasonal variations
• C)seasonal indices need not be available
• D)time series demand should exhibit a nonlinear trend with seasonal variations

---

Definitions:

Doubtful Accounts

Accounts receivable that a company believes it may not be able to collect, often leading to the creation of an allowance for doubtful accounts.

Debits

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet or in its income statement.

Credits

An accounting entry that either increases liabilities and equity or decreases assets, reflective of the dual-entry bookkeeping system.

Rental Receipts

Income received from renting out property or equipment.