Answered: MAD for method A is 5, MAD for method B…

MAD for method A is 5, MAD for method B is 7, MAD for method C is 4, and MAD for method D is 2. Which forecasting method is best? O Method C O Method D O Method A Method B

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 13DQ

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Concept explainers

Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.

Question

MAD for method A is 5, MAD for method B is 7, MAD for method C is 4, and MAD for method D is 2.
Which forecasting method is best?
O Method C
Method D
O Method A
O Method B

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