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Ira Lisetskai [31]
3 years ago
6

In a fixed-order-quantity system, when demand is uncertain, using economic order quantity (EOQ) based only on the average demand

will result in a low probability of a stockout. True or False?
Business
1 answer:
Mrrafil [7]3 years ago
3 0

Answer:

False

Explanation:

If the demand is uncertain, if you use average demand to calculate the economic order quantity (EOQ), you will have a high probability of a stock-out occurring.  

EOQ = √(2DS / H)

where:

D = annual demand in units

S = order cost per purchase order

H = holding cost per unit, per year

If D is uncertain, then the whole calculus will either be understated or overstated.

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On September 30, 2021, Bricker Enterprises purchased a machine for $200,000. The estimated service life is 10 years with a $20,0
vagabundo [1.1K]

Answer:

$38,000

Explanation:

Double-declining-balance method used its ratio by computing depreciation expense. By multiplying it against original cost. To get ratio we simply divide 100% over the life of an asset times 2.

100% / 10 years x 2 = 20%

First, we will compute the 2021 depreciation for us to know our base amount on year 2022.

$200,000 x 20% = $40,000 x3/12 = $10,000

we prorate the annual depreciation expense because part of it is applicable to 2021 and 2022.

For year 2022, we have two ways to compute.

First:

$200,000 x 20% = $40,000 x 9/12 = $30,000 (the portion of the first year’s depreciation that’s for January 1, 2022 to September 30,2022), plus

$200,000 - $40,000 = $160,000 (year 2 net book value)

$160,000 x 20% = 32,000 x 3/12 = $8,000 (portion of second year’s depreciation that for October 01, 2022 to December 31, 2022)

Or second, an alternative way to compute,

2021

$200,000 x 20% = $40,000 x 3/12=$10,000

2022

$200,000 - $10,000 = $190,000 (Net book value)

$190,000 x 20% = $38,000

*Residual value is ignored in computing depreciation expense under double-declining-balance method.

7 0
3 years ago
You own a lot in Key West, Florida, that is currently unused. Similar lots have recently sold for $1,260,000. Over the past five
Kamila [148]

Answer:

Explanation:

find the solution below

7 0
3 years ago
Explain the difference between buffet and fast food restaurants.
jek_recluse [69]

Answer:

The difference is that buffets don't actually have to prepare the food quickly.

Explanation:

Buffet can be considered a form of fast food: you walk in and pay, and can then immediately grab whatever you like and eat it.

3 0
3 years ago
Read 2 more answers
Morningstar serves three key constituents: individual investors, financial advisors, and institutional investors. institutional
ivolga24 [154]
Institutional investors include PENSION PLANS.
Institutional investors are those entity which pool money together to purchase securities, real properties and other investments. Examples of institutional investors include: banks,pensions, insurance companies, hedge funds, investment advisers, mutual funds, etc.<span />
8 0
2 years ago
On December 31, Hawkin's records show the following accounts.
quester [9]

Preparation of statement of owner's equity for Hawkin for the month ended December 31.

<h3>What is owner's equity?</h3>

Owner's equity is the  amount of money that would be returned to a company's shareholders if all of the assets were liquidated and all of the company's debt was paid off in the case of liquidation.

Owner's Equity = Assets – Liabilities

Assets

Cash $ 8,300

Accounts Receivable 1,100

Supplies $2,800

Equipment 15,100

Total Assets                          $27,300

Liabilities

Accounts Payable 7,600

Withdrawals  2,100

Total liabilities                      ($9,700)

Owner's equity                    $17,600

Learn more about owner's equity here : brainly.com/question/11110287

8 0
2 years ago
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