All categories

3 years ago

Which of following is a TRUE statement about inventory within a continuous review system?

Business

1 answer:

garri49 [273]3 years ago

5 0

Answer:

c. When ordering or setup costs increase, Economic Order Quantity increases

Explanation:

In inventory there are two types of review systems used to replenish stock, the periodic inventory and continuous inventory.

Continuous inventory involves ordering the same quantity of a good in each order. However the rate at which goods are replenished varies based on monitoring of level of goods. Orders are made when inventory gets to a certain level.

In this instance when there is an increase in ordering or setup there needs to be allocation of a higher amount for orders. The additional cost is added to the economic order quantity

You might be interested in

For a uniform series that starts at the end of the year two and stops at the end of year eight, the (F/A, i%, 7) factor will yie

Nikolay [14]

Sorry, I’m not sure so I don’t want to mislead you

5 0

3 years ago

On December 31, 2017, Ball Company leased a machine from Cook for a 10-year period, expiring December 30, 2027. Annual payments

puteri [66]

Answer:

Explanation:

A capital lease is a lease arrangement in which the lessor agrees to transfer the ownership of an asset to the lessee at the completion of the lease period. During the leasing contract , the lease is treated like an asset in the company's balance sheet

Lease liability at inception = 676,000

Annual payment made on December 2017 =(100,000)

Balance lease liability on 2017 = 576,000

Lease liability on December 2018

Balance on 2017 =576,000

Factor in 10% discount on lease payment

100,000 - (576,000*10%)= 100,000-57,600 = (42,400)

Balance on lease liability = 533,600

The current liability portion =

Factoring in the 10% discount =

100,000 - (533,600*10%) = 100,000 - 53,360 = 46,640

7 0

3 years ago

Wang Company accumulates the following adjustment data at December 31. For each item, indicate (1) the type of adjustment (prepa

IRISSAK [1]

Answer:

a. Services performed but unbilled totals $600.

Accrued revenue
Accounts receivable was understated before the adjustment

b. Store supplies of $160 are on hand. The supplies account shows a $1,900 balance.

Accrued expense
Supplies was overstated before the adjustment

c. Utility expenses of $275 are unpaid.

Accrued expense
Utilities expense was understated before the adjustment

d. Service performed of $490 collected in advance.

Unearned revenue
Revenue was overstated before the adjustment

e. Salaries of $620 are unpaid.

Accrued expense
Wages expense was understated before the adjustment

f. Prepaid insurance totaling $400 has expired.

Prepaid expense
Insurance expense was understated

4 0

3 years ago

A common feature of skiing is waiting in lift lines.

pychu [463]

Answer:

The price should be increased to achieve a balance between supply and demand.

Explanation:

If visitors have to wait long for lift, this suggests that the demand is not matching the supply. In fact demand seems to be higher than supply which causes long wait for lift. An increase in price will cause the demand to fall and hence the supply will meet the demand and would result in less waiting for lifts.

4 0

3 years ago

To supplement her income, Jeanne Lester decided to start her own bookkeeping business while still working as an office assistant

Triss [41]

Answer:

Yes

Explanation:

Misappropriation of assets includes actions like stealing a company's assets or borrowing them for personal use. In this case, Jeanne didn't steal any of the company's assets and even paid for her office supplies, but she is borrowing the company's phone, computer and printer. In a strict manner, we can say that she misappropriated the assets even though they were not harmed and remain completely operational.

7 0

3 years ago