Forecasting Methods
Financial analysts utilize four basic types of forecasting techniques to project future sales, costs, and investment costs for a company. Although there are many commonly used quantitative budget forecasting tools, in this article we concentrate on the top four techniques: Straight-line, moving average, simple linear regression, multiple linear regression, and straight-line.
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You are aware that there are 150 units in stock at the moment (beginning inventory = SI), and ABC's marketing manager predicts that demand for the motor will be 240, 225, 265, 270, 260, and 275 units over the course of the following six months (M = 6). (D1, D2, D3, D4, and D5 respectively).
In six months, you wish to have 50 units in stock (ending inventory = EI) and have decided that you want to lower the average inventory level of various goods, including this one.
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Answer:
a.Capital expenditure, replacement component
b.Capital expenditure, replacement component
c.Revenue Expenditure, not applicable
d.Capital expenditure, replacement component
e.Capital expenditure, additional
f.Revenue Expenditure, not applicable
g.Capital expenditure, additional
Explanation:
Capital Expenditure involve the addition or replacement on assets that <u><em>increases flows of economic benefits or Income earning</em></u> capacity.
Revenue Expenditure involve repairs or maintenance of assets in order to <u><em>maintain the ability to earn income or economic benefits</em></u> and not to increase it.
Patents are used to balance the right of the individual with the concept of the public good. In general, the purpose of a patent is two-fold: to allow the inventor of some new thing to retain exclusive rights as to its use for a limited period of time, and after that time to ensure that the details of the invention are available for public use.
By granting the patent-holder exclusive rights to their invention, use and duplication of the invention is at the sole discretion of the inventor, potentially allowing them to profit from it. However, after a period of time those exclusive rights cease to apply, and the new invention becomes available to the public. This contributes to the public good by increasing the amount of general knowledge available.
Answer:
Economic costs include both explicit costs and implicit costs.
Explanation:
- In economics, costs can be in the form of explicit and implicit as implicit costs are opportunity costs and are opportunities for engaging in business. While the explicit costs are accounting costs which are involved in the production of raw matter, wages etc.
What does the consumer price index measure? B. the change in prices of specific goods and services over time. The consumer price index is also know as the CPI when reffering to this calculation. The CPI measures the weighted items of specific consumer goods and services by averaging them overtime. The CPI allows for comparison of the same products that consumers use on a daily basis and see how much they are using each year. This lets us know how the economy is doing as it relates to inflation. Inflation is the increase in prices and decline of the purchasing value of money in an economy.
