For the Demand Values and the January Forecast Shown in the Table

question 30

Multiple Choice

For the demand values and the January forecast shown in the table below, the exponential smoothing forecast for March using α = 0.30 is

• A) 489.
• B) 486.
• C) 483.
• D) 480.

---

Definitions:

Variable Costs

Costs that vary directly with the level of production or service delivery.

Fixed Costs

Expenses that do not change with the level of output or sales, such as rent, salaries, and insurance.

Fixed Cost

A cost that does not vary with the level of output or sales, such as rent, salaries, and insurance premiums.

Overhead Cost

Indirect expenses related to the operation of a business, such as rent, utilities, and administrative salaries, that are not directly tied to the production of goods or services.