Longer-Period Moving Averages React More ________ to Recent Demand Changes

question 110

Short Answer

Longer-period moving averages react more ________ to recent demand changes than do shorter period moving averages.

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Definitions:

Manufacturing Overhead

All manufacturing costs that are not directly related to the production of a product, including indirect materials, indirect labor, and other indirect costs.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual products or jobs, based on a certain activity, such as direct labor hours or machine hours.

Direct Labor-Hours

The total time spent by workers directly involved in the manufacturing process.

Unit Product Cost

The total cost (direct materials, direct labor, and overhead) to produce a single unit of a product.