Table 108
a Manager Wants to Forecast the Monthly Demand
for

question 166

Multiple Choice

Table 10.8
A manager wants to forecast the monthly demand
for a machine the company produces.
$$\begin{array} { | c | c | } \hline \text { Month } & \begin{array} { c } \text { No. Machines } \\\text { Sold }\end{array} \\\hline 1 & 50 \\2 & 65 \\3 & 52 \\4 & 56 \\5 & 55 \\6 & 60 \\\hline\end{array}$$
-Use the information in Table 10.8.Calculate the MAD for months 4 through 6 for the weighted moving average forecasts.The weights are 0.50,0.30,and 0.20,where 0.50 refers to the most recent demand.

• A) less than or equal to 2
• B) greater than 2 but less than or equal to 3
• C) greater than 3 but less than or equal to 4
• D) greater than 4

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials, labor, and overhead expenses.

Cost of Goods Manufactured

The total cost of all materials, labor, and manufacturing overhead used in producing finished goods over a specific period.

Flexible Budgeting

A budgeting process that adjusts for changes in the volume of activity, rather than remaining static.

Direct Labor

The wages and related benefits of employees who are directly involved in the production of goods or the delivery of services.