The Moving Averages Method Refers to a Forecasting Method That

question 29

Multiple Choice

The moving averages method refers to a forecasting method that

• A)is used when considerable trend, cyclical, or seasonal effects are present.
• B)uses regression relationship based on past time series values to predict the future time series values.
• C)relates a time series to other variables that are believed to explain or cause its behavior.
• D)uses the average of the most recent data values in the time series as the forecast for the next period.

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Definitions:

Product Costs

Costs that are directly associated with the creation of a product, including direct materials, direct labor, and manufacturing overhead.

Direct Materials

Raw materials that are directly traceable and integral to the finished product in the manufacturing process.

Selling Costs

All costs that are incurred to secure customer orders and get the finished product or service into the hands of the customer.

Indirect Costs

Costs that are not directly traceable to a single product or operation, such as overhead.