In Looking at Seasonal Indexes One Weakness to Watch for Is

question 105

Multiple Choice

In looking at seasonal indexes one weakness to watch for is

• A) use of the wrong alpha
• B) incorrect selection of weights
• C) a clear lack of linear relationship
• D) seasonality is not present
• E) significant increase in computational requirements

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Definitions:

Inventory Reduction

A strategy to decrease the amount of inventory that a company holds in order to improve cash flow or reduce storage costs.

Tax Refund

The amount of money returned to a taxpayer by the government when the taxpayer's paid taxes exceed their tax liability for a given year.

Operating Cycle

The period it takes for a business to purchase inventory, sell products, and convert the sales back into cash, essentially measuring the time span from buying raw materials to receiving cash from sales.