Answer:
a) safety stock = z-score x √lead time x standard deviation of demand
z-score for 99.9% = 3.29053
√lead time = √7 = 2.6458
standard deviation of demand = 3
safety stock = 3.29053 x 2.6458 x 3 = 26.12 ≈ 26 soaps
reorder point = lead time demand + safety stock = (7 x 16) + 26 = 138 soaps
EOQ = √[(2 x S x D) / H]
S = order cost = $10
D = annual demand = 16 x 365 = 5,840
H = $0.05
EOQ = √[(2 x $10 x 5,840) / $0.05] = 1,528.40 ≈ 1,528 soaps
b) total order costs per year = (5,840 / 1,528) x $10 = $38.22
total holding costs = (1,528 / 2) x $0.05 = $38.20
total annual ordering and holding costs = $76.42
Answer: a. The trial balance is completed to ensure that debits and credits are equal in the General Ledger.
Explanation:
The Trial balance is used to ensure that all totals on the accounts on the debit side are equal to all totals on the accounts on the credit side.
The account totals are each listed on the debit and credit sides of the trial balance and then added up. If the amounts do not tally, it suggests that there is an error in the entries that needs to be fixed.
Answer:
B : assets
Explanation:
As we know that
The debit columns report assets and expenditures side while revenues shareholder equity and the liabilities side are reported in the credit column.
Since we know that asset and the expenses account has a debit balance that means if they are increased so it would be recorded in the debit side and if it decreases so it would be recorded in the credit side that reflects the direct relationship.
Answer:
"Assuming the market of soda has a regular downward sloping" demand curve and upward sloping supply curve, the tax will <u>be added to</u> the price paid by buyers and <u>not the price received by</u> the price received by sellers.
Explanation:
When demand is takes a downward slope it simply means the good is not sort after in the open market.When Supply curve takes an upward curve it means their is a great availability of production resources.
Tax incidence goes alongside the above theory,in cases where demand is low ,the tax will will be imposed on the buyer .But in the case where demand is high the tax is usually imposed on the producer.
