Which of the Following Is a Possible Source of Bias

question 64

Multiple Choice

Which of the following is a possible source of bias error in forecasting?

• A) Failing to include the right variables
• B) Using the wrong forecasting method
• C) Employing less sophisticated analysts than necessary
• D) Using incorrect data
• E) Using standard deviation rather than MAD

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Definitions:

Contribution Format

A method of profit reporting that separates fixed and variable costs, highlighting the contribution margin of products, services, or business segments.

Variable Costing

A technique in managerial accounting where only variable production costs are charged to product units, differentiating it from absorption costing by not including fixed overhead.

Absorption Costing

A cost accounting method that includes all manufacturing costs, including both fixed and variable, in the cost of a product.

Contribution Format

A type of income statement layout that separates variable costs from fixed costs, highlighting the contribution margin.