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Answer:
SmartSC
The economic order quantity (EOQ) for Supplier A is:
= c) 253
Explanation:
a) Data and Calculations:
Supplier A Supplier B
Price per unit $30 $6
Annual unit demand 7,200 3,000
Annual holding cost $9 $1.80 ($6 * 30%)
Ordering cost $40
Economic order quantity for Supplier A = square root of (2 * D * S)/H
where D = Annual demand in units
S = Ordering cost per order
H = Holding cost per unit
= square root of (2 * 7,200 * $40)/$9
= square root of 64,000
= 253
Some goods are not readily available at the market, If a shortage exists, consumers are unhappy.
<h3>What is market shortage?</h3>
Shortage occurs when the demand for a product or service exceeds the available supply. This can make the consumer go for alternatives or buy at a higher price.
Therefore, If a shortage exists, consumers who are unhappy about not being able to purchase the products or services they want will tend to bid the prices higher, moving the market toward equilibrium.
Learn more on market shortage from
brainly.com/question/7068977
Answer:
The Multinational strategy
Explanation:
The reason is that the strategy that includes the management of company that operates in a number of countries which includes its financial management and operational controls procedures in the other countries. The multinational organization always pursue multinational strategy because it faces greater number of risks and this strategy helps the country to manage the risks internationally. Lets take an example of a company that made investment in UK of $5 million which due to weakening of UK sterling is worth $4.5 million. Though the company made a great increase in profits but the risk of loss of the value investment is higher. So there are a lot of such types of risks that the company needs to manage. To manage risk of an multinational organization, the company uses Multinational strategy.
Answer: Options B and C
Explanation:
To account for Direct Material Variance for for price and quantity, it is pertinent to note that Unfavorable variances should be recorded as debits while favorable variances should be recorded as credits.
Therefore
If the direct materials price variance is $500 favorable, Then Credit should be made to direct material price variance and
If the direct materials quantity variance is $250 unfavorable, Then a Debit should be made to direct materials quantity variance.
