ACCA Applied Knowledge · Management Accounting · Analytical techniques in budgeting and forecasting
Monthly sales of a product were 40, 46 and 52 units in January, February and March. What is the three-month moving average, which is placed against February?
The three-month moving average is 46 units. Add the three monthly figures, 40, 46 and 52, to get 138, then divide by three. The result is placed against the middle month, February, and smooths out short-term fluctuations in the data.
- A44
- B46Correct
- C48
- D52
Explanation
The three-point moving average is (40 + 46 + 52) / 3 = 138 / 3 = 46. The value 52 is simply the latest month. 44 and 48 are not the average of the three figures.
Did you get it right without looking?
One question tells you little. A timed set on Analytical techniques in budgeting and forecasting shows your real accuracy, how long you take and where you lose marks.
More Analytical techniques in budgeting and forecasting questions
- A company finds that the correlation coefficient between monthly advertising spend and monthly sales revenue is +0.9. What is the coefficien…
- The first unit of a job took 40 hours. The total time for the first two units was 64 hours. Using the cumulative average time model, what le…
- The first unit of a product takes 250 labour hours and an 80% learning curve applies. What is the total time expected for the first 4 units?
- The first unit of a product takes 125 labour hours. An 80% learning curve applies (cumulative average time model) and labour costs $15 per h…
- A business buys two materials. Base-year prices: X $4, Y $10. Current prices: X $5, Y $12. Base-year quantities: X 100 units, Y 50 units. Wh…
- A company's raw material price index was 120 in Year 1 (base Year 0 = 100) and 150 in Year 2. Material cost in Year 1 was $48,000. Assuming …