When Using the Exponentially Weighted Moving Average for Purposes of Forecasting

question 120

Multiple Choice

When using the exponentially weighted moving average for purposes of forecasting rather than smoothing,

• A)the previous smoothed value becomes the forecast.
• B)the current smoothed value becomes the forecast.
• C)the next smoothed value becomes the forecast.
• D)None of the above.

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Definitions:

Income Summary

An account used in the closing process that summarizes the revenues and expenses for a specific accounting period before transferring the net income to retained earnings.

Net Income

Final earnings of a corporation post deductions of expenses and taxes from its aggregate revenue.

Revenues

Income generated from normal business operations, including sales of goods and services, fees, commissions, and other sources.

Expenses

Costs incurred in the process of earning revenue, encompassing a broad range of spending from operational to administrative.