Which of the Following Types of Trend Models Will Best

question 24

Multiple Choice

Which of the following types of trend models will best suit a series where the value of the series changes by a fixed amount for each period?

• A) Cubic trend
• B) Linear trend
• C) Exponential trend
• D) Quadratic trend

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Definitions:

Break-even Point

The level of sales at which total revenues equal total expenses, resulting in no net profit or loss.

Variable Cost

Expenses that change in proportion with the level of activity or production volume, such as materials costs or sales commissions.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business over a certain period, such as rent, salaries, and loan payments.

High-low Method

A technique in managerial accounting used to estimate variable and fixed costs by analyzing the highest and lowest levels of activity.