A Company Is Using Exponential Smoothing to Develop Its Forecast

question 4

Multiple Choice

A company is using exponential smoothing to develop its forecast. It should choose an alpha factor:

• A)with a very low value
• B)of 0.5
• C)with a very high value

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Definitions:

Salaries Payable

This refers to the amounts due to employees for services rendered that have not yet been paid at the end of an accounting period.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and profits.

Depreciation Expense

The allocated portion of the cost of a tangible asset over its useful life, recognized as an expense on a company's income statement.

General Liability Insurance

General Liability Insurance is a type of insurance policy that provides cover to a business for bodily injury, personal injury, and property damage caused by the business’s operations, products, or injuries that occur on the business’s premises.