Aster Inc. is a multinational company. It has branches in two other countries. However, it converts the transactions of the entire business into US dollars. It also doesn’t record the skill levels and the quality of customer service it provides. Which accounting principle does Aster Inc. comply with?

Monetary unit principle

Explanation:

Monetary unit principle is a principle of accounting that business transaction should only be recorded in the financial statement in monetary terms that are stable and reliable.

This means that every business transaction must first be converted into money before being recorded , and anything that is not quantifiable should not be recorded.

This is the reason that Aster omits skills level and the quality of customer service it provides in his books of account.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

answer; rapid growth in buyer demand and high buyer switching cost;