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mezya [45]
4 years ago
9

Effective controls relevant to the efficiency of purchases will result in proper evaluation of the time for ordering merchandise

. When making this evaluation, the purchasing company should give primary consideration to
Business
1 answer:
ch4aika [34]4 years ago
3 0

Answer:

The trade-off between the cost of owning and storing excess merchandise and the risk of loss by not having merchandise on hand.

Explanation:

Effective management of costs when purchasing inventory for sale must be well planned by a business.

Economic order quantity calculation is used to minimise cost of storing excess merchandise and cost of ordering merchandise.

The model is based on assumption of constant demand for goods and effectively avoids stock outs. This is done by using probability to estimate the loss that will be incurred by not having stock on hand.

This consideration between storage cost and cost of not having stock will guide the business to make stock ordering choices that will minimise cost

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They most likely drop the prices 
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​O'Mally Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at the
Tatiana [17]

Answer:

3.63yrs

Explanation:

CExplanation: C) Investment / Annual cash flows$2,900,000 / 800,000 = 3.63 yrs

4 0
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Silver Mining is opening a new mineral extraction facility in the local town and will employ several thousand people. They have
TEA [102]

Answer:

Corporate Social Responsibility or CSR.

Explanation:

To put it simply, Corporate Social Responsibility means that a company is concerned and responsible about how their actions affect People, Planet and their Profits (3 P's)

Following are the generally accepted principles of CSR.

  1. Compliance with international commitments
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  3. Maintenance of good corporate governance
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5 0
3 years ago
Zach wants to take his family on a cruise in 4 years and he estimates the cost of the cruise will be $16,500. How much money sho
Law Incorporation [45]

Answer:

$118.83 per month that Zach must save.

Explanation:

This is a future value annuity as we know the cruise will cost $16500 in 4 years time as estimated by Zach for the cruise.

Fv is the future value for the annuity which is $16500

we also have i the interest rate which is 3.99% monthly

n is the number of periods in which the monthly amount is saved 4 x 12 =48

now we will substitute to the following formula and solve for C the monthly payments that Zach saves for the cruise:

Fv =C [((1+i)^n -1)/ i] now we substitute

$16500 = C[((1+3.99%)^48 -1)/3.99%)] then solve for C

$16500/[(1+3.99%)^48 -1)/3.99%] = C

C = $118.83 that Zach must save per month for 4 years to afford the cruise.

6 0
3 years ago
Santana Company exchanged equipment used in its manufacturing operations plus $2,000 in cash for similar equipment used in the o
Ede4ka [16]

Solution :

We know that the exchange takes place when the FMV receive is equal to the FMV given up.

Where the FMV = fair market value

The commercial substance means the future cash flows exchange.

The non monetary exchange refers to the cash which is less than 25% of the fair value exchange.

The journal entries for the Santana Corp. when the exchange lack the commercial substance are reported as :

Transaction                                           Debit ($)                 Credit ($)

Asset(new)                                           11,000

Accumulated depreciation(old)          9,000

Asset (old)                                                                       28,000

Cash                                                                                 2000

The journal entries for Delaware Corp. when the exchange lacks the commercial substance.

Transaction                                           Debit ($)                 Credit ($)

Asset(new)                                            16,000  

Accumulated depreciation (old)          10,000

Loss                                                                                      2500

Assets (old)                                                                           28,000                                  

7 0
3 years ago
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