The Cyclical Component of a Time Series

question 180

Multiple Choice

The cyclical component of a time series

• A) represents periodic fluctuations which reoccur within one year.
• B) is obtained by adjusting for calendar variation.
• C) represents periodic fluctuations which usually occur in two or more years.
• D) is obtained by adding up the seasonal indexes.

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Definitions:

Periodic Inventory System

A method of inventory valuation where updates to the count are made on a periodic basis, typically at the end of an accounting period.

Perpetual Inventory System

An accounting method that records inventory transactions in real-time, allowing for continuous tracking of inventory levels.

Purchases

Refers to the buying of goods and services by a business for use or sale.

Gross Profit

The financial metric representing the difference between revenues and the cost of goods sold, before deducting administrative and other expenses.