A Company Wants to Forecast Demand Using the Simple Moving

question 80

Multiple Choice

A company wants to forecast demand using the simple moving average. If the company uses four prior yearly sales values , which of the following is the simple moving average forecast for year 2018?

• A) 100.5
• B) 140.0
• C) 142.5
• D) 145.5
• E) 155.0

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Definitions:

Merchandise Purchases Budget

A financial plan that estimates the cost of goods a company needs to purchase to meet its sales goals.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period of time, primarily used to assess whether a company has sufficient cash to fulfill its operations and financial commitments.

Manufacturing Overhead Budget

A detailed plan that estimates the expected manufacturing overhead costs for a specific period, assisting in financial planning.

Variable Overhead Rate

The rate at which variable overhead costs are applied to the production process, typically based on a cost driver.