Which of the Following Forecasting Methods Would Be Most Accurate

question 63

Multiple Choice

Which of the following forecasting methods would be most accurate if demand were rapidly decreasing?

• A) 3-month moving average
• B) 6-month moving average
• C) 12-month moving average
• D) Simple mean
• E) Exponential smoothing with  = 0.001

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Definitions:

Compensation Costs

The total expenses incurred by an employer to provide wages, salaries, and benefits to employees.

Budgeted Costs

The estimated financial expenditure allocated for specific purposes during a predetermined timeframe.

Net Profit

The amount of money that remains from revenues after all operating expenses, taxes, and costs have been subtracted.

Compensation System

A structured approach to providing financial and non-financial rewards to employees, aimed at attracting, maintaining, and motivating a skilled workforce.