Which of the Following Is Not an Advantage of Exponential

question 90

Multiple Choice

Which of the following is not an advantage of exponential smoothing?

• A) It enables us to perform one-period ahead forecasting.
• B) It enables us to perform more than one-period ahead forecasting.
• C) It enables us to smooth out seasonal components.
• D) It enables us to smooth out cyclical components.

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Definitions:

Variable Expense

Costs that vary in relation to a company's operations.

Contribution Margin Ratio

A financial performance metric that measures the additional profit generated for each dollar of sales after variable costs are subtracted.

CVP Graph

A visual representation of the Cost-Volume-Profit analysis, illustrating the relationship between a company's costs, sales volume, and profits.

Total Revenue Line

A graphical representation of a company's total revenues plotted over a period of time, showcasing trends or changes in income generation.