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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

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Westfield Graziers packages and distributes three grades of animal feed. The material cost per tonne and estimated annual sales

7nadin3 [17]

Answer:

1. Particulars Super premium Premium Economy

Material cost $16 $12 $10

Indirect cost (40000/10000) $4 $4 $4

Total cost $20 $16 $14

Profit (100% of total cost) $20 $16 $14

Selling price $40 $32 $28

2. Yes, the price calculated in part A takes into account what customers are willing to pay. This can be said because the company has the policy of adding 100% to the total cost. This means that the company knows that customers will be willing to pay that much amount.

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3 years ago

On July 1, 2020, Whispering Co. pays $13,620 to Metlock Insurance Co. for a 3-year insurance policy. Both companies have fiscal

S_A_V [24]

Answer:

jul-01 Prepaid expenses 13.620

jul-01 Cash 13.620

dec-31 Insurance policy expense 2.270

dec-31 Prepaid expenses 2.270

Explanation:

Paid 1-jul 13620

Three Years 13.620 36 months

Monthly 378 month

Current Year 2.270 6 months

jul-01 Prepaid expenses 13.620

jul-01 Cash 13.620

dec-31 Insurance policy expense 2.270

dec-31 Prepaid expenses 2.270

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4 years ago

Michael mixed three colors of paint and came up with black. this is an example of

rosijanka [135]

Michael mixed three colors of paint and came up with black. this is an example of subtractive color mixing. When you mix together subtractive colors eventually the light is subtracted from them giving off a black color tone. These colors change with the light but can cancel each other out easily.

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3 years ago

At the beginning of 2016, Gannon Company received a three-year zero-interest-bearing $1,000 trade note. The market rate for equi

notka56 [123]

Answer:

d. Overstate, understate, understate, zero

Explanation:

The amount of earnings overall is the same. so, in the end, there is n difference in retained earnings.

But, on accrual accounting, the note should not enter the accounting as 1,000 as time value of money exist.

At 2016 the sales revenue should be the present value of 1,000 dollars not the complete 1,000 dollars. Thus, is overstated.

Then, the interest accrued from the note are not recognized. Thus, the first year (2016) recognize revenues that should be matched with 2017 and 2018

Thus, these two subsequent years ended understated.

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3 years ago

When a life insurance company advertises the safety and security of its products, it is using a ________ advertising strategy.

horrorfan [7]

I believe the answer is: C. persuasive

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3 years ago

Read 2 more answers