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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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A bussiness performs a cost benefit analysis when it
bogdanovich [222]

Answer:

Consider the possible advantages and drawbacks of a decision.

Explanation:

In Financial accounting, costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.

Cost-benefit analysis is also known as the break even analysis, it is an important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is. It is used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.

Generally, to use the cost-benefit analysis, financial experts usually make some assumptions and these are;

1. Sales price per unit product is kept constant.

2. Variable costs per unit product are kept constant and the total fixed costs of production are kept constant i.e costs can be divided into fixed and variable components.

3. All the units produced are sold i.e there is no change in inventory quantities during the period.

5. The costs accrued are as a result of change in business activities.

6. A company selling more than a product should simply sell in the same mix i.e the sales mix is constant.

Hence, a business performs a cost benefit analysis when it consider the possible advantages and drawbacks of a decision i.e whether or not it would bring value to the company or create a significant level of impact on the business.

5 0
3 years ago
An American executive is going on a business trip to Japan and England. Before she departs, she purchases $10,000 worth of Japan
Sedbober [7]

Answer:

The correct answer is $907.76.

Explanation:

According to the scenario, computation of the given data are as follow:-

1¥ = 82.54$

1£ = 132.03¥

Convert pounds to us dollars= £ ÷ $ = £132.03 ÷ $82.54

= 1.60$ ÷ £

Mean, 1£ = 1.6$

She has £567.35 .

After converting the pound into the dollar, she will receive = £567.35 × $1.60

= $907.76

Hence, she receive $907.76 if she sells the pounds.

3 0
3 years ago
The constitutional authority of congress to forbid discrimination in employment is based in the
yan [13]
The constitutional authority of congress to forbid discrimination in employment is based on the <u>power of Congress to regulate interstate commerce. </u>
When it came to interstate commerce, there was no employment discrimination there - both men and women could work, regardless of the race and skin color. This was the basis on which the Congress managed to ban discrimination in employment elsewhere.

5 0
3 years ago
Granger Company had January 1 inventory of $150,000 when it adopted dollar-value LIFO. During the year, purchases were $900,000
Lisa [10]

Answer:

$624, 750

Explanation:

Purchases = 900,000

Sales = 1500000

Price index = 110%

Inventory= 189750

1,500,000 - [{($150,000 x 110%) + $900,000} - $189,750]

=1,500,000 - [($150,000 x 1.1) + $900,000] - $189,750

= 1,500,000 - (1065000 - 189750)

= 1,500,000 - 875250

=$624,750

Gross profit. = $624750

5 0
3 years ago
Stocks for which any missed dividend payments must be paid in the future to the preferred shareholders before the common shareho
Murljashka [212]

Answer:

Preferred stocks

Explanation:

Preferred stocks are those that must be paid dividends first than common stock. The same thing happens in case of bankruptcy: preffered stock holders get paid first than common stock holders, although both are paid after bondholders.

The downside of preferred stocks is that they do not transfer control in the company. While common stock owners have the right to vote in company matters, preferred stock owners do not have that right.

5 0
3 years ago
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