Explain,briefly,why the Larger Number of Periods Included in a Moving

question 82

Essay

Explain,briefly,why the larger number of periods included in a moving average forecast,the less well the forecast identifies rapid changes in the variable of interest.

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Definitions:

Standard Quantity

The expected amount of materials or inputs required to produce a unit of product under normal operating conditions.

Direct Materials Quantity Variance

The variance between the real amount of direct materials consumed during manufacturing and the anticipated standard amount.

Standard Materials Quantity

The expected amount of materials that should be used for the production of a certain number of units, as set by a company's standards.

Board Feet

A unit of measure for the volume of lumber, equivalent to a piece of wood one foot long, one foot wide, and one inch thick.