The Exponential Smoothing Method Requires Which of the Following Data

question 69

Multiple Choice

The exponential smoothing method requires which of the following data to forecast the future?

• A)The most recent forecast
• B)Precise actual demand for the past several years
• C)The value of the smoothing constant delta
• D)Overall industry demand data
• E)Tracking values

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Definitions:

Current Ratio

This ratio indicates how well a business can settle its short-term debts with assets that are readily available.

Acid-test Ratio

A stringent indicator of a company’s short-term liquidity, calculated by dividing liquid assets by current liabilities, excluding inventory.

Debt-to-equity Ratio

The ratio that indicates the mix between shareholders' equity and debt in the capital structure used to finance assets.

Receivable Turnover

A financial metric that measures how efficiently a company collects on its accounts receivable, calculated as sales divided by accounts receivable.