I Each Typical Seasonal Index Is a Percent with the Average

question 57

Multiple Choice

i. Each typical seasonal index is a percent with the average for the year equal to 100. ii. The ratio-to-moving-average method eliminates the seasonal, cyclical and irregular components from the original data (y) .
iii. The trend component of a time series is obtained my minimizing the sum of the squares of the errors.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) and (ii) are correct statements but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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Definitions:

Process Costing

A costing method used for homogeneous products, where costs are accumulated for a process or department and averaged over all units produced.

Total Cost

The aggregate expense incurred in producing a product or offering a service, including fixed and variable costs.

Next Processing Department

The subsequent department or phase in a manufacturing process that a product or material moves to after the current processing.

First Processing Department

is the initial stage or department in a manufacturing process where the raw materials start their transformation into finished goods.