The Multiplicative Seasonal Method Is Most Appropriate When the

question 115

Multiple Choice

The multiplicative seasonal method is most appropriate when the

• A) seasonal influence is a constant regardless of the level of demand.
• B) seasonal influence is erratic, changing in the timing of the peaks and valleys.
• C) seasonal influence is dependent on the level of demand.
• D) demand each period is a constant multiple of the demand in the previous period.

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Definitions:

Market System Characteristics

Features distinctive to market economies, such as private property, profit motive, consumer sovereignty, and competition.

Specialization

The concentration of the productive efforts of individuals or firms on a limited number of activities, leading to increased efficiency.

Production

The process of creating goods or services by combining various inputs like labor, materials, and technology.

Hyperinflation

An extremely high rate of inflation, usually defined as an inflation rate in excess of 50 percent per month.