Answer:
C. Order quantity increases as holding cost per unit per year decreases
Explanation:
the formula for calculating economic order quantity (EOQ) is:
EOQ = √(2SD/H)
- S = cost per order
- D = annual demand
- H = holding cost per unit
If holding cost per unit (H) decreases, the EOQ will increase. Whenever you are dividing, if the denominator decreases, the result will be larger.
Answer:
The second company which pays as per delivery.
Explanation:
In simple words, the company paying their employees as per the deliveries made have incentive their employees to work in speedy manner. It is definite that employees, in intention to earn more, will try to deliver more and more pizzas and that could lead to major accidents.
The other company employees might not work in an hurry as they are being paid on hourly wages hence extra work is not going to get them anything.
Answer:
If the company used the percentage of sale method and estimates bad debts to be 2% of sales what is the amount of bad debt expense:
If the company uses the percentage of accounts receivable method and estimates 4% of accounts receivable will be uncollectible
Explanation:
- The percentage of sale method
800,000 2% 16,000
Initial Balance
Accounts Receivable $ 120,000
Allowance for Uncollectible Accounts $ 500
Allowance for Uncollectible Accounts $ 15,500
Accounts Receivable $ 15,500
- Accounts Receivable Method 4% 4,800
Bad debt expense $ 4,300
Allowance for Uncollectible Accounts $ 4,300
Answer: A, Debit Cash of $180 and Credit sales of $180.
Explanation:
The above transaction is due to the fact that MacKenzie company is the company that made the sales.
$10,000 for 180days promissory note @ 9%. Since the 9% is an annual rate and the loan is for 180day we calculate thus:
10,000*9/2 = 10,000 * 4.5%=$ 10,450
Answer:
benchmark testing
Explanation:
BENCHMARK TESTING can be regarded as method that is devices in the measurement of set of repeatable quantifiable results which usually taken as a point of reference in comparing products/services in a company. A benchmark must be a repeatable one, and it's application is also found in result testing in comparism of the present as well as well as future software releasees along with benchmarks. It should be noted that To measure system performance, companies use benchmark testing which uses a set of standard tests on one system to compare its performance and capacity to that of other systems.
