Forecasting Methods That Assume That the Demand Forecast Is Highly

question 20

Multiple Choice

Forecasting methods that assume that the demand forecast is highly correlated with certain factors in the environment (e.g. ,the state of the economy,interest rates,etc. ) to make a forecast are known as

• A)qualitative forecasting methods.
• B)time series forecasting methods.
• C)causal forecasting methods.
• D)simulation forecasting methods.

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Definitions:

AVC

Average Variable Cost, the total variable cost divided by the quantity produced, representing the cost of labor and materials for each unit of output.

ATC

Average Total Cost (ATC) refers to the total cost per unit of output produced, comprising both fixed and variable costs.

Variable Costs

Costs that change in proportion to the level of activity or volume of output in production.

Fixed Costs

Business expenses that remain constant regardless of the level of production or sales, such as rent or salaries.