Fitting a Linear Trend to 36 Monthly Data Points (January

question 89

Multiple Choice

Fitting a linear trend to 36 monthly data points (January 2011 = 1,February 2011 =2,March 2011 = 3,etc.) produced the following tables. The projected trend value for January 2014 is ________.

• A) 231.39
• B) 555.71
• C) 339.50
• D) 447.76
• E) 355.71

---

Definitions:

Recognition of Cost

The accounting principle that requires expenses to be recorded in the period in which they are incurred, regardless of when the payment is made.

Merchandise Sold

Merchandise sold refers to the goods that have been purchased by customers from a company, resulting in revenue.

Gross Profit

The difference between revenue and the cost of goods sold before deducting overheads, payroll, taxation, and interest payments.

Credit Memo

A document issued by a seller to a buyer, reducing the amount owed by the buyer due to a return, error, or allowance.