The Moving Average Forecast Method Is Used When

question 43

Multiple Choice

The moving average forecast method is used when

• A)demand has observable trend or seasonality.
• B)demand has no observable trend or seasonality.
• C)demand has observable trend and seasonality.
• D)demand has no observable level or seasonality.

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Definitions:

Uncollectible Percentage

An estimated fraction of accounts receivable that a company does not expect to collect.

Aging

A method used in accounting to categorize accounts receivables based on the length of time an invoice has been outstanding.

Allowance Account

An account used in accounting to reduce the value of accounts receivable to a more realistic amount by accounting for potential bad debts.

Uncollectibles

Debts owed to a company that are considered unlikely to be recovered or paid.