One Measure of the Accuracy of a Forecasting Model Is

question 27

Multiple Choice

One measure of the accuracy of a forecasting model is ______.

• A) the smoothing constant
• B) a deseasonalized time series
• C) the mean squared error
• D) None of the answers is correct.

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Definitions:

Gross Profit Method

A technique to estimate the amount of ending inventory and cost of goods sold by using the gross profit margin.

Gross Margin Ratio

A financial metric showing the percentage of revenue that exceeds the cost of goods sold, indicating the efficiency of a company in managing its production costs.

Ending Inventory

The entire value of commodities prepared for sales at the finale of an accounting timeline.

Perpetual Inventory System

A Perpetual Inventory System continuously updates inventory records and cost of goods sold with each transaction, providing real-time inventory levels.