The Decomposition Method of Sales Forecasting Would Be More Likely

question 22

True/False

The decomposition method of sales forecasting would be more likely used by a manufacturer of bricks than a manufacturer of wood burning stoves.

---

Definitions:

First-In, First-Out

An inventory valuation method where the goods purchased or produced first are sold or used first.

Equivalent Units

A metric used in cost accounting to express the amount of work done by manufacturers who have partially completed units on hand at the end of an accounting period.

Work in Process-Assembly Department

Inventory account that tracks the cost of partially completed goods that are still in the production process in the assembly department.

Equivalent Unit

A concept used in cost accounting to represent a portion of work done on a product, quantified in terms of fully completed units.