A Method That Uses a Weighted Average of Past Values

question 33

Multiple Choice

A method that uses a weighted average of past values for arriving at smoothed time series values is known as ______.

• A) regression analysis
• B) deseasonalization
• C) decomposition
• D) exponential smoothing

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Definitions:

Activity Level

Pertains to the volume or quantity of work performed or services provided, often related to the operational capacity of a business or project.

Relevant Range

The range of activity or volume over which the assumptions about fixed and variable cost behavior are valid.

Variable Costs

Costs that change in proportion to the level of production or business activity.

Committed Fixed Costs

Expenses that a company has committed to pay over a period, which do not vary with the level of production or sales.