finals part na nasa dulo

Question 1

Use a variety of mathematical models that rely on historical data and/or causal variables to forecast demand

Answer 1

Quantitative Forecasts

Question 2

Analysing a time series means breaking down past data into components and then projecting them forward.

Answer 2

Decomposition of a Time Series Forecast

Question 2

assumes that the future is a function of the past. Thus, historical data are used to predict the future using sequences with equal periods.

Answer 2

Time series forecasting

Question 3

the gradual upward or downward movement of the data over time.

Answer 3

Trend

Question 4

data pattern that repeats itself after a period of days, weeks, months or quarters.

Answer 4

Seasonality

Question 5

a pattern of data that occurs every several years; usually associated with the business cycle and is very important in short-term business analysis and planning

Answer 5

Cycle

Question 6

blips” in the data by chance and unusual situations

Answer 6

Random variations

Question 7

such as linear regression, incorporate the variables or factors that might influence the quantity being forecasted

Answer 7

Associative or causal models

Question 8

assumes that demand in the next period will be equal to the demand in the most recent period

Answer 8

Naïve model

Question 9

widely used where repeated forecasts require the application of methods like sum-of-the-digits and trend adjustment methods

Answer 9

Weighted moving average

Question 10

uses the weighted moving average method where more weight is given to the recent data;

Answer 10

Exponential smoothing

Question 11

supported by the belief that the future is more dependent on the recent past than the distant past;

Answer 11

Exponential smoothing

Question 12

useful on random historical with no seasonal fluctuations

Answer 12

Exponential smoothing

Question 13

fits a trend line to a series of historical data points and then projects into the future for medium-to-long range forecasts

Answer 13

Trend projections

Question 14

shows the relationship between two variables: the dependent and independent;

Answer 14

Regression analysis

Question 15

same mathematical model employed in the least squares method of trend projection can be used

Answer 15

Regression analysis

Question 16

expresses the degree or strengths of the linear relationship; usually identified as r, and can be any number between +1 and -1

Answer 16

CORRELATION COEFFICIENTS FOR REGRESSION LINES

Question 17

is looking ahead to see what actions should be taken to realize particular goals

Answer 17

planning

Question 18

is looking backward determining what actually happened and comparing it with the previously planned outcomes

Answer 18

control

Question 19

are financial plans for the future and are a key component of planning

Answer 19

budget

Question 20

it identifies objective and the actions needed to achieve them

Answer 20

budget

Question 21

plots a direction for an organizations future activities and operations

Answer 21

strategic plan

Question 22

it generally covers at least five years prepared before budget

Answer 22

strategic plan

Question 23

dimensions of financial planning

Answer 23

• short range plan
• long range plan

Question 24

approaches of financial planning

Answer 24

• zero base approach
• incremental base approach

Question 25

objectives of financial planning

Answer 25

• planning
• coordination
• control

Question 26

budget’s baseline is zero

Answer 26

Zero-based Approach

Question 27

previous year’s budget is irrelevant in allocating resources for the current year

Answer 27

Zero-based Approach

Question 28

requires justification of required expenses

Answer 28

Zero-based Approach

Question 29

requires a lot of documentation

Answer 29

Zero-based Approach

Question 30

execution is usually time-consuming and costly

Answer 30

Zero-based Approach

Question 31

traditional approach

Answer 31

Incremental-based Approach

Question 32

starts with previous year’s budget

Answer 32

Incremental-based Approach

Question 33

increments are subject to justification

Answer 33

Incremental-based Approach

Question 34

the comprehensive financial plan for the organization as a whole

Answer 34

The Master Budget

Question 35

typically for one-year period

Answer 35

The Master Budget

Question 36

yearly budgets are broken down into quarterly and monthly budgets

Answer 36

The Master Budget

Question 37

a moving 12-month budget

Answer 37

Continuous budget

Question 38

as a month expires in the budget, an additional month in the future is added so that the company always has a 12-month plan on hand

Answer 38

Continuous budget

Question 39

reviews the budget

Answer 39

Budget committee

Question 40

resolves differences that arise as the budget is prepared

Answer 40

Budget committee

Question 41

provides policy guidelines and budgetary goals

Answer 41

Budget committee

Question 42

approves the final budge

Answer 42

Budget committee

Question 43

monitors the actual performance of the organization as the year unfolds

Answer 43

Budget committee

Question 44

usually the controller, is the person responsible for directing and coordinating the organization’s overall budgeting process

Answer 44

Budget director

Question 45

approved by the budget committee and describes expected sales in units and pesos

Answer 45

sales budget

Question 46

the basis for all of the other operating budgets and most of the financial budgets

Answer 46

sales budget

Question 47

first step includes making the sales forecast

Answer 47

sales budget

Question 48

tells how many units must be produced to meet sales needs and to satisfy ending inventory requirements

Answer 48

production budget

Question 49

tells the amount and cost of raw materials to be purchased in each time period

Answer 49

direct materials purchases budget

Question 50

shows the total direct labor hours and the direct labor cost needed for the number of units in the production budget

Answer 50

direct labour budget

Question 51

as with direct materials, the budgeted hours of direct labor are determined by the relationship between labor and output

Answer 51

direct labour budget

Question 52

shows the expected cost of all production costs other than direct materials and direct labor

Answer 52

Overhead budget

Question 53

costs that vary with direct labor hours are pooled and called

Answer 53

variable overhead;

Question 54

outlines planned expenditures for nonmanufacturing activities

Answer 54

Selling and administrative expenses budget

Question 55

can be broken down into fixed and variable components

Answer 55

Selling and administrative expenses budget