A Forecast Is A(n)

question 26

Multiple Choice

A forecast is a(n)

• A) glimpse of what just happened.
• B) execution of strategy and adjustments.
• C) projection for the future.
• D) analysis of the past.
• E) plan for implementing strategic plans.

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Definitions:

Fixed Overhead Cost

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Volume Variance

A measure used in budgeting and accounting to show the difference between expected (budgeted) and actual sales volumes, affecting revenue or costs.

Direct Labor Time Variance

The difference between the estimated time to complete a task and the actual time taken, affecting cost management in manufacturing.

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, calculated for a specific period.