Chu Clocks Has the Following Demand History for the Past

question 50

Short Answer

Chu Clocks has the following demand history for the past six months:
$$\begin{array} { | c | c | } \hline \text { January } & 54 \\\hline \text { February } & 62 \\\hline \text { March } & 74 \\\hline \text { April } & 65 \\\hline \text { May } & 50 \\\hline \text { June } & 58 \\\hline\end{array}$$
A) Using a 3-month moving average, find the July forecast.
B) Using a weighted moving average with weights of 0.7, 0.2, and 0.1, find the July forecast.
C) Using exponential smoothing with α = 0.25 and a June forecast of 56, find the July forecast.

• A) Using a 3-month moving average, find the July forecast.
• B) Using a weighted moving average with weights of 0.7, 0.2, and 0.1, find the July forecast.
• C) Using exponential smoothing with α = 0.25 and a June forecast of 56, find the July forecast.

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Definitions:

Tax Deductible

Expenses that can be subtracted from gross income to reduce the taxable income.

Warranty Liability

An obligation reported on a company's balance sheet that represents the estimated costs of fulfilling the terms of warranties offered on products sold.

Deferred Tax

The amount of income tax payable/recoverable in future reporting periods in respect of temporary differences and tax losses.

Balance Date

The date on which a company's financial year ends and financial statements are prepared to reflect the company's financial position.