Which One of the Following Statements Is Correct Concerning Moving

question 35

Multiple Choice

Which one of the following statements is correct concerning moving averages?

• A) The longer the time period under consideration, the more sensitive the moving average is to daily price fluctuations.
• B) A simple moving average is computed as the arithmetic mode.
• C) The shorter the time period under consideration, the easier it is to spot long-term price trends.
• D) A moving average helps remove short-term fluctuations from the analysis.

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Definitions:

Price Change

Refers to the fluctuation in the selling price of goods and services over time, which can impact the revenues, expenses, and ultimately the profits of a business.

Gross Profit Method

An inventory estimation technique used to calculate the cost of goods sold and ending inventory based on the gross profit margin.

Inventory Count

A physical count of products or materials a company has in stock, typically conducted periodically to ensure inventory records match actual stock levels.

Gross Profit Method

An accounting technique used to estimate the amount of ending inventory and cost of goods sold, based on the gross profit margin.