Consider the Data That Generate This Plot Covering Time for Months

question 56

Multiple Choice

Consider the data that generate this plot covering time for months numbered 1 to 50. What characteristic is most prominent in the pattern?

• A)trend
• B)seasonality
• C)randomness
• D)none

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Definitions:

Absorption Costing

A method of costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Operating Income

Operating income is the profit realized from a company's regular business operations, excluding deductions of interest and taxes, as well as any gains or losses from non-operating activities.

Direct Costing

A cost accounting method where only variable costs (direct materials, direct labor, variable manufacturing overhead) are included in product costs, fixed overhead costs are expensed in the period they are incurred.

Cost Of Goods Manufactured

The total cost of making and finishing a product.