Which of the Following Statements About Moving Averages Is Not

question 114

Multiple Choice

Which of the following statements about moving averages is not true?

• A)It can be used to smooth a series.
• B)It gives equal weight to all values in the computation.
• C)It is simpler than the method of exponential smoothing.
• D)It gives greater weight to more recent data.

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Definitions:

Manufacturing Overhead Applied

The portion of estimated manufacturing overhead costs that is assigned to each unit of production, based on a predetermined rate.

Job-order Costing

An accounting method that tracks costs individually for each job, rather than within set periods.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to allocate manufacturing overhead to individual units of production based on estimated costs.

Machine Hours

The total hours that a machine or group of machines operates during a specific period, often used as a basis for allocating manufacturing overhead.