Forecasting Techniques Generally Assume

question 62

Multiple Choice

Forecasting techniques generally assume:

• A)the absence of randomness.
• B)continuity of some underlying causal system.
• C)a linear relationship between time and demand.
• D)accuracy that increases the farther out in time the forecast projects.
• E)accuracy that is better when individual items, rather than groups of items, are being considered.

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Definitions:

Commercial Substance

A condition in financial accounting where a transaction significantly changes the economic position of an entity.

Book Value

The net value of an asset calculated as total assets minus total liabilities, often used to estimate a company's value.

Land Account

A type of asset account on a company's balance sheet that represents the cost of land owned by the company.

Expenditures

Outflows of money or other valuable assets that are paid or incurred as a result of acquiring goods or services.