Which Statement Is Correct Regarding Forecasting Using an Exponential Smoothing

question 64

Multiple Choice

Which statement is correct regarding forecasting using an exponential smoothing model?

• A)A model with low α is more responsive to new data than a model with high α.
• B)Increasing α will typically increase the forecast accuracy.
• C)As α increases, more weight is put on recent data.
• D)When data have an upward trend, the forecasts will have an upward bias.

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Definitions:

Job-Order Costing

A cost accounting system that assigns manufacturing costs to an individual product or batch of products, making it possible to track the cost of specific jobs.

Machine-Hours

A measure of production time, used as a basis for allocating manufacturing overhead costs based on the number of hours machines are operated.

Job M598

A specific production or project task within a job order costing system, identified by the code M598 for tracking its associated costs and progress.

Unit Product Cost

The total cost to produce one unit of product, including materials, labor, and overhead.