The Estimating Factor That Considers the Decreasing Accuracy of Estimates

question 96

Short Answer

The estimating factor that considers the decreasing accuracy of estimates as one forecasts activities that are further into the future is known as ____________.

---

Definitions:

Fixed Overhead

Regular, unchanging expenses incurred by a company, such as rent, salaries, and insurance, that do not vary with production volume.

Cost Per Unit

The cost incurred in producing, manufacturing, or acquiring a single unit of a product or service.

Ending Inventory

The value of goods available for sale at the end of an accounting period, not yet sold.

Manufacturing Costs

The total expense involved in manufacturing a product, including direct materials, direct labor, and overhead costs.