Given an Actual Demand of 61, a Previous Forecast of 58

question 43

Multiple Choice

Given an actual demand of 61, a previous forecast of 58, and an alpha of .3, what would the forecast for the next period be using simple exponential smoothing?

• A) 45.5
• B) 57.1
• C) 58.9
• D) 61.0
• E) 65.5

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Definitions:

Differential Income

Definition: The difference in income between two alternative business decisions, focusing on the incremental or additional revenue generated.

Variable Cost

Expenses that change in proportion to the level of production or sales, including costs like raw materials and direct labor.

Differential Analysis

A method used in both financial and managerial accounting that focuses on the differences in costs and revenues between two or more business decisions.

Depreciated

The decrease in the value of an asset over time due to wear and tear, obsolescence, or other factors, reflected in accounting through depreciation.