Random Variation Is One of the Four Different Components of a Time

question 222

True/False

Random variation is one of the four different components of a time series.It is caused by irregular and unpredictable changes in a time series that are not caused by any other component.It tends to mask the existence of the other more predictable components.

---

Definitions:

Total Cost

The complete cost of producing or acquiring goods, including variable and fixed costs.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated before any year-end adjustments.

Raw Material Purchases

The total cost incurred for buying materials that are used in the manufacturing process of goods.

Cash Payout

The distribution of funds or payments, often from a corporation or investment, to shareholders or investors.