Which Is Not a Characteristic of Exponential Smoothing

question 61

Multiple Choice

Which is not a characteristic of exponential smoothing?

• A) smooths random variations in the data
• B) easily altered weighting scheme
• C) weights each historical value equally
• D) has minimal data storage requirements
• E) None of the above; they are all characteristics of exponential smoothing.

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Definitions:

Useful Life

The estimated period that an asset is expected to be usable for its intended purpose.

Depreciation Expense

The allocation of the cost of an asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.

Straight-Line Basis

A method of calculating depreciation or amortization by evenly spreading the cost of an asset over its useful life.

Salvage Value

The expected sale value of an asset upon reaching the end of its serviceable life.