In Industries Where Prices Are Changing or Technology Is Advancing,forecasters

question 12

Multiple Choice

In industries where prices are changing or technology is advancing,forecasters should:

• A)Use only financial drivers such as revenue.
• B)Use only nonfinancial drivers such as productivity and volume.
• C)Use both financial and nonfinancial drivers.
• D)Use national real aggregates such as real GDP.

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Definitions:

Straight-line Method

A method of calculating depreciation or amortization by evenly spreading the cost of an asset over its useful life.

Annual Interest

The total amount of interest due over the course of a year on a loan or financial product.

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time, typically reported on the income statement.

Semiannual Interest

Interest calculated and paid on a loan or bond two times a year.