Errors in the Sales Forecast Can Be Offset by Similar

question 25

True/False

Errors in the sales forecast can be offset by similar errors in costs and income forecasts.Thus,as long as the errors are not large,sales forecast accuracy is not critical to the firm.

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overheads incurred and the standard cost of those overheads for the actual production level.

Electrical Motor

A device that converts electrical energy into mechanical energy, used in a multitude of applications from household appliances to industrial machinery.

Standard Labor-Hours

The predetermined amount of labor time estimated for the completion of a task or production of goods under normal conditions.

Machine-Hours

The total hours that machines are in operation during the production process, used as a basis for allocating manufacturing overhead.