One Quantitative Forecasting Models Limitation Is

question 40

Multiple Choice

One quantitative forecasting models limitation is

• A) it is objective
• B) they are consistent
• C) they are based on mathematical formulas
• D) they are limited on the quality of available data
• E) they can work around bad data

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Definitions:

Materials Quantity Variance

Materials quantity variance is the difference between the actual quantity of materials used in production and the expected quantity, based on standard usage rates.

Materials Price Variance

The difference between the actual cost of materials and the standard cost, used to assess efficiency in purchasing raw materials.

Raw Materials

The basic substances in their natural, modified, or semi-processed states, used as inputs for the production process in manufacturing goods.

FOH Budget Variance

The difference between the actual factory overhead costs incurred and the budgeted overhead costs set at the beginning of a period.