A Company Wants to Forecast Demand Using the Simple Moving

question 71

Multiple Choice

A company wants to forecast demand using the simple moving average.If the company uses three prior yearly sales values ,which of the following is the simple moving average forecast for year 2009?

• A)100.5
• B)122.5
• C)133.3
• D)135.6
• E)139.3

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Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and are an integral part of the finished product.

Production Budget

A financial plan that outlines the expected production levels of a company based on projected sales, inventory policies, and capacity constraints.

Cash Collections

The total amount of money received from customers or clients for goods or services provided.

Sales Estimate

A projection of the revenue a company expects to generate from sales over a specific period, often used as a basis for budgeting and planning.