What Is the Mean Absolute Deviation and Mean Squared Error

question 70

Multiple Choice

What is the mean absolute deviation and mean squared error of the following forecast

• A) 13, 157
• B) 14, 321
• C) 16, 312
• D) 17, 316
• E) 18, 321

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Definitions:

Cost Formula

A mathematical equation used to predict costs at different levels of activity, considering both fixed and variable components.

Revenue Variance

The difference between actual revenue earned and the projected or budgeted revenue.

Flexible Budget

A budget designed to adapt according to variations in volume or activity levels.

Fixed Cost

Costs that remain constant in total regardless of changes in the level of activity or production volume, such as rent or salaries.