Company Wants to Forecast Demand Using the Weighted Moving Average

question 37

Multiple Choice

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 2014 at 30%,year 2015 at 30% and year 2016 at 40%,which of the following is the weighted moving average forecast for year 2017?

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

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Definitions:

Managerial Accounting

The process of identifying, measuring, analyzing, and communicating financial information to managers for the pursuit of an organization's goals.

Nonfinancial Information

Data related to a company’s operations that is not expressed in monetary terms.

Internal Decision Makers

Entities or individuals within an organization responsible for making choices that affect the company's operations and strategy.

Managerial Accounting

The method of pinpointing, quantifying, examining, elucidating, and relaying financial data to managers to help achieve the objectives of an organization.