Which of the following is a forecasting technique?

Which of the following is a forecasting technique?
A . LIFO
B . Moving average
C . Time-weighted series
D . ABC analysis

View Answer

Answer: B

Explanation:

Last in, first out (LIFO) is a method used to account for inventory that records the most recently produced items as sold first. Under LIFO, the cost of the most recent products purchased (or produced) are the first to be expensed as cost of goods sold (COGS)―which means the lower cost of older products will be reported as inventory.

Moving average: a calculation to analyse data by creating series of averages of different subset of full data set. It is commonly used with time series data to smooth out short-term fluctuation and highlight long-term trends or cycle

ABC analysis is a method of analysis that divides the subject up into three categories: A, B and C.

There is no technique called time-weighted series.

LO 2, AC 2.3