- 20 Marks
IMAC – MAY 2020 – L1 – Q5 – Forecasting | Standard Costing and Variance Analysis
Calculate sales trend using moving average and line of best fit; identify sources of information for standard prices.
Question
a) The monthly sales of Danamo Company Limited have been given as follows:
| Monthly Sales (GH¢’000) | Moving Total (GH¢’000) |
|---|---|
| April | 150 |
| May | 140 |
| June | 160 |
| July | 180 |
| August | 200 |
| September | 190 |
| October | 220 |
| November | 230 |
| December | 250 |
Required:
i) Using the three-month moving average, calculate the trend. (3 marks)
ii) Using the line of best fit, estimate the sales of January, February, and March of the following year. (12 marks)
b) State and explain FIVE (5) sources of information that may be considered in setting standard prices for materials in Management Accounting. (5 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Forecasting, Moving Average, Standard Prices, Trend Analysis
- Level: Level 1
- Topic: Forecasting, Standard Costing and Variance Analysis
- Series: MAY 2020
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