A Company Wants to Forecast Demand Using the Weighted Moving

question 27

Multiple Choice

A company wants to forecast demand using the weighted moving average.If the company uses three prior yearly sales values , and we want to weight year 2010 at 30%, year 2011 at 30% and year 2012 at 40%, which of the following is the weighted moving average forecast for year 2013?

• A)170
• B)168
• C)158
• D)152
• E)146

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Definitions:

Notes Receivable

Financial assets representing amounts owed to a company by debtors, typically evidenced by formal instruments with specified payment terms.

Factoring Fee

A charge assessed for the service of factoring, where a business sells its receivables to a third party at a discount.

Accounts Receivable

The money owed to a business by its customers for goods or services delivered or used but not yet paid for, considered a current asset on the balance sheet.

Promissory Note

A Promissory Note is a financial instrument wherein one party promises in writing to pay a determinate sum of money to another, either at a fixed or determinable future time.