A Company Wants to Forecast Demand Using the Weighted Moving

question 65

Multiple Choice

A company wants to forecast demand using the weighted moving average.If the company uses two prior yearly sales values ,and we want to weight year 2012 at 10% and year 2013 at 90%,which of the following is the weighted moving average forecast for year 2014?

• A) 120
• B) 128
• C) 133
• D) 138
• E) 142

---

Definitions:

Tooling Department

A specialized section within a manufacturing facility responsible for designing, maintaining, and storing tools, dies, and other equipment used in production.

Production Areas

Specific sections within a manufacturing or production facility where goods are made or assembled.

Single Plantwide Rate

An overhead absorption rate that applies the same overhead costs to all products or services regardless of the actual overhead each consumes.

Multiple Production Department Rates

The use of different overhead application rates for various departments within a manufacturing facility to more accurately assign costs.