Answer: D. 500
Explanation:
The Economic Order Quantity (EOQ) refers to an efficient number of units that a company should order to minimize the total costs of inventory such as holding costs, order costs, and shortage costs.
It is calculated by the formula below,
EOQ = √ (2 * Annual demand * Ordering Cost / Holding Cost)
EOQ = √ (2 * 5,000 * 250 /10)
EOQ = 500 units.
The economic ordering quantity (EOQ) for this item is 500 units.
<span>the action of selling the same product at different prices to different buyers, in order to maximize sales and profits.
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Answer:
Yanta Co. has a higher exposure to exchange rate risk than Diz Co.
The reason is that Yanta Co. does not have net inflows of euros. Instead, its euro transactions yield net outflows.
It will always be in need of euros to settle its foreign debts or obligations, unlike Diz Co. with foreign assets.
Explanation:
a) Data and Analysis:
Diz Co. has net cash inflows of euros and net cash inflows of swiss francs
Yanta Co. has net cash outflows of euros and net cash inflows of swiss francs
b) Exposure to exchange rate risk or currency risk is the financial risk arising from fluctuations in the value of the US dollars against the Euro or Swiss Francs in which Diz Co. has some foreign assets while Yanta Co. has foreign obligations.
Answer:
The revenue recognition principle
Explanation:
The revenue recognition principle states that revenue should be recorded when services have been performed or products have been delivered to customers and not when cash is received for the service rendered
For example, if a supplier delivers 10,000 worth of goods to consumers in November and is paid for the goods in December. Revenue should be recognised in November and not December.
