How Does a House Account Differ from Other Types of Accounts

question 23

Multiple Choice

How does a house account differ from other types of accounts?

• A)A house account is always unprofitable.
• B)A house account is usually too small for attention by a salesperson.
• C)No commission is paid on sales to the house account.
• D)It is always served by the firm's telemarketing center.
• E)Commissions are split among all the salespeople who service the house account's various locations.

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Definitions:

Biased Forecast

A forecast that consistently tends to overestimate or underestimate the actual value due to systematic errors.

Naive Approach

A forecasting technique that assumes that demand in the next period is equal to demand in the most recent period.

Time-series Model

A statistical model that analyzes a sequence of data points, typically measured at successive time intervals, to forecast future trends.

Time-series Forecasting

The use of historical data to predict future occurrences through identifying patterns or trends over time.