Which of the Following Is a Criticism Made of Qualitative

question 20

Multiple Choice

Which of the following is a criticism made of qualitative forecasts?

• A) They become the only possible forecast when past data are either not available or are misleading.
• B) They provide no guidance on the likely effects of changes in explanatory variables.
• C) They are prone to biases such as optimism and overconfidence.
• D) They are difficult to document.

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Definitions:

Markup

The difference between the cost of a good or service and its selling price, expressed as a percentage of the cost.

Selling Price

The amount a buyer pays to purchase a product or service from a seller.

Total Job Cost

The sum of all costs assigned to a specific job or project, including direct materials, direct labor, and applied manufacturing overhead.

Overhead Applied

The allocation of indirect costs to products, jobs, or activities based on a predetermined rate.