The Most Commonly Used Measures of Forecast Accuracy Are The

question 223

Multiple Choice

The most commonly used measures of forecast accuracy are the:

• A)mean absolute deviation and the sum of squares for forecast errors
• B)sum of squares for forecast error and seasonal indexes
• C)seasonal indexes and the percentage of trend
• D)all of these choices are correct

Understand the concept and application of activity-based costing in allocating factory overhead.

Recognize the applicability and limitations of overhead allocation methods in both manufacturing and service companies.

Understand the fundamentals of activity-based costing and how activity rates are computed.

Recognize the use of ABC information in identifying cost improvement opportunities.

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Definitions:

Receivable Averages

A metric that calculates the average amount of accounts receivable over a certain period to assess a company's efficiency in collecting money owed.

Interest Revenue

The income earned from lending money or investing in interest-bearing assets.

Income Statements

Financial statements that show a company's revenue, expenses, and profit over a specific period.

Notes Receivables

Financial assets representing amounts owed to a company, evidenced by a written promise to pay the specified amount of money at a certain date.