It Is Now near the End of May and You

question 126

Multiple Choice

It is now near the end of May and you must prepare a forecast for June for a certain product.The forecast for May was 900 units.The actual demand for May was 1000 units.You are using the exponential smoothing method with ? = 0.20.The forecast for June is

• A) less than 925 units.
• B) greater than or equal to 925 units but less than 950 units.
• C) greater than or equal to 950 units but less than 1000 units.
• D) greater than or equal to 1000 units.

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Definitions:

Incremental Sales

The additional sales generated by a particular marketing campaign or business decision, beyond what would have been achieved without it.

Operating Expenses

Costs that are related to the day-to-day operations of a business, such as rent, utilities, and payroll, excluding cost of goods sold.

Capital Budgeting

The act of strategizing and overseeing a corporation's extensive investments in ventures and assets over an extended period.

Straight-Line Depreciation

A technique for distributing the cost of a physical asset across its lifespan in uniform yearly payments.