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Naddika [18.5K]
3 years ago
14

When the carrying cost of inventory is expressed as a percentage: A. it is usually the same as the borrowing cost of the organiz

ation. B. it must exclude the insurance cost of inventory. C. it usually exceeds 57.5 percent per year. D. the lower it is, the lower the economic order quantity. E. it is multiplied by the material unit cost to calculate the per unit carrying cost.
Business
1 answer:
dimaraw [331]3 years ago
5 0

Answer:

Option E It is multiplied by the material unit cost to calculate the per unit carrying cost.

Explanation:

The reason is that the carrying cost which is also known as holding cost is the cost of holding a unit material for a year and this can be calculated as:

Holding Cost is also given in percentage of material price and is calculate by multiplying it with the material unit cost to calculate the holding cost per unit per year.

So the option E is correct.

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Swifty Corporation plans to introduce a new product and is using the target cost approach. Projected sales revenue is $850500 ($
pochemuha

Based on the information given the desired profit per unit is $0.14 per unit.

First step is to find the unit using this formula

Units=Target sales revenue / Target selling price per unit

Units=$850500 / $4.05

Units =210,000

Second step is to calculate the  desired profit per unit using this formula

Desired profit per unit=Target selling price per unit - (Target costs / Units)

Desired profit per unit=$4.05-($821250 / 210,000)

Desired profit per unit=$4.05- $3.91

Desired profit per unit=$0.14

Inconclusion the desired profit per unit is $0.14 per unit.

Learn more here:

brainly.com/question/24315795

7 0
2 years ago
Which is the penultimate step in the planning process?
Studentka2010 [4]
Hello, The first step of financial planning process is to define specific goals. Since this is the first step I figured it is the most important.
Hope this helps..
8 0
3 years ago
Brooke's Boutique plans to launch a new clothing line. For this purpose, the firm first conducts a survey to understand its targ
Gekata [30.6K]

Answer:

Descriptive followed by causal is the correct answer.

Explanation:

8 0
3 years ago
Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time
coldgirl [10]

Answer:

Option C                

Explanation:

In simple words, Horizontal analysis ( also referred to as pattern analysis) is indeed a method for the study of financial records that indicates improvements in the sums of the related products over a span of time. This is a valuable tool for determining pattern circumstances. The reports are being used in horizontal analysis for two different time intervals and is compared on percentage basis.

4 0
2 years ago
Jefferson Company has sales of $300,000 and cost of goods available for sale of $270,000. If the gross profit ratio is typically
Ivenika [448]

Answer:

$60000

Explanation:

Given: Sales = $300000.

           Cost of goods available for sale= $270000.

           The gross profit ratio= 30%

First finding the gross profit out of total sales.

Gross profit= 30\% \times 300000

Gross profit= \$ 90000

∴ Cost of goods sold= Total\ sales - gross\ profit

Cost of goods sold= 300000-90000

Cost of goods sold=  \$ 210000

Hence, cost of goods sold= \$ 210000

Now, finding estimated cost of the ending inventory.

Cost of ending inventory= cost\ of\ goods\ available\ for\ sale - cost\ of\ goods\ sold

⇒ Cost of ending inventory=  \$ 270000- \$ 210000

∴ Cost of ending inventory=  \$ 60000

Hence, estimated cost of the ending inventory under the gross profit method would be $60000.

3 0
2 years ago
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