If a Firm Produced a Standard Item with Relatively Stable

question 88

Multiple Choice

If a firm produced a standard item with relatively stable demand, the smoothing constant alpha (reaction rate to differences) used in an exponential smoothing forecasting model would tend to be in which of the following ranges?

• A) 5% to 10%
• B) 20% to 50%
• C) 20% to 80%
• D) 60% to 120%
• E) 90% to 100%

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Definitions:

Sales on Account

Revenues generated from sales where payment is deferred to a later date.

Ending Accounts Receivable

The amount of money owed to a company by its customers for goods or services delivered or used but not yet paid for at the end of an accounting period.

Stockholders' Equity

The residual interest in the assets of a company after deducting liabilities, representing the ownership stake of shareholders.

Net Plant

The net book value of a company’s plant assets, typically representing the total cost of these assets minus accumulated depreciation.