The Boxer Company Has Been in Business Since 1998

question 4

Multiple Choice

The Boxer Company has been in business since 1998. The following sales data are recorded by quarter for the years 2010-2012. The managers at the company wish to determine the seasonal indexes for each quarter during the year. The first step in the process is to remove the seasonal and random components. To do this, they will begin by computing a four period moving average. What is the four-period moving average based on Winter 99 - Fall 99?

• A) 280
• B) 70
• C) 60
• D) 55

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Definitions:

Fixed Costs

Costs that remain constant regardless of the amount of output or sales.

Variable Costs

Costs that change in proportion to the level of production or sales activity.

Direct Labor Budget

An estimation of the cost and amount of labor required for production or services, included within a company's overall budget planning.

Wage Rate

The amount of money paid to an employee per unit of time or per unit of output, which can be influenced by several factors including industry, occupation, and geographical location.