The Smoothing Constant,α,in the Exponential Smoothing Forecast

question 83

Multiple Choice

The smoothing constant,α,in the exponential smoothing forecast

• A)must always be a value greater than 1.0.
• B)must always be a value less than 0.10.
• C)must be a value between 0.0 and 1.0.
• D)should be equal to the time frame for the forecast.

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Definitions:

Work in Process Account

An account that tracks the costs of unfinished goods in the manufacturing process at any given time.

Process Costing

This is an accounting methodology used to allocate costs to units of product in industries where the production process is continuous and homogenous.

Homogeneous Products

Products that are identical or nearly identical in features and quality, making them undifferentiated in the eyes of consumers.

Beginning Work in Process Inventory

The value of products in the production process at the start of an accounting period.