Under Which of the Following Conditions Would You Suggest That

question 98

Multiple Choice

Under which of the following conditions would you suggest that a double exponential smoothing model should be used instead of a single exponential smoothing model?

• A) When the time-series data exhibit a trend
• B) When there are two main time-series variables involved in the forecast application
• C) When the data exhibit only random variation
• D) When the data set is extremely uneven

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Definitions:

Activity-based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing a more accurate allocation of costs to products.

Overhead Cost

Expenses related to the operation of a business that cannot be directly linked to a specific product or service.

Customer Margin

The profit generated from a particular customer, calculated by subtracting the costs directly associated with serving them from the revenue they generate.

Activity-based Costing

A costing method that assigns costs to products or services based on the activities and resources that contribute to their creation and delivery.