A Firm's Demand Data from the Last Two Quarters Is

question 36

Multiple Choice

A firm's demand data from the last two quarters is displayed in the table. Use a three period weighted moving average with W_t = 0.7, W_t-1 = 0.2, and W_t-2 = 0.1 to forecast demand for July. $$\begin{array} { | c | c | } \hline \text { Month } & \text { Demand } \\\hline \text { January } & 154 \\\hline \text { February } & 148 \\\hline \text { March } & 214 \\\hline \text { April } & 180 \\\hline \text { May } & 225 \\\hline \text { June } & 246 \\\hline\end{array}$$

• A)235.2
• B)195.6
• C)158.8
• D)180.4

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Definitions:

Production Department

The division within a business that is charged with the manufacture of goods or the provision of services.

Materials Consumed

The direct raw materials used in the production process during a specific period.

Conversion Costs

Expenses incurred during the transformation of raw materials into finished products, including labor and overhead.

Equivalent Unit

A concept used in cost accounting to standardize units of production, facilitating the calculation of costs per unit in processes producing heterogeneous outputs.