Continuous Replenishment Systems Rely Heavily on Extremely Accurate Long-Term Forecasts

question 89

True/False

Continuous replenishment systems rely heavily on extremely accurate long-term forecasts.

---

Definitions:

Mixed Cost

Expenses that have both fixed and variable components, varying with the level of activity but not in direct proportion.

High-low Method

A technique used in cost accounting to estimate variable and fixed costs based on the highest and lowest levels of activity.

Fixed Manufacturing Cost

Costs that do not change with the level of production, such as rent, salaries, and insurance.

Fixed Manufacturing Cost

Expenses that do not change with the level of production, such as rent, salaries, and equipment depreciation in a manufacturing setting.