Answer:
The answer is False. By cutting the variance of the demand during lead time to 1/2 its original value while maintaining the same lead times, the new safety stock will also drop to 1/2 its original value.
Explanation:
Safety stock is a form of inventory management that provides an additional unit of an item held as a buffer i order to mitigate risk of running out of stock.
A reorder point provides a buffer of time to restock items when stock is running out. It helps to reduce operational costs and chaos that may arise such as rush fees owed to suppliers. It makes the use of a warehouse space more efficient.
Suppose we are a distributor that uses safety stock and a reorder point for inventory management. If we can find a more consistent manufacturer that will maintain the same mean lead times while cutting the variance of the demand during lead time to 1/2 its original value, the new safety stock that we need to carry to achieve the same service level will also drop to 1/2 its original value.
Answer:
Total overhead rate = $34.17 per machine hour
Explanation:
The total overhead rate would the sum of the variable overhead rate and the fixed overhead rate
<em>The pre-determined fixed overhead absorption rate = Estimated fixed overhead /Estimated machine hours </em>
<em>DATA:</em>
<em>Estimated overhead - $256,500.</em>
<em>Estimated machine hours - 10,000 machine hours</em>
The pre-determined fixed overhead absorption rate =
$256,500/ 10,000 machine hours = 25.65 per hour
<em>The pre-determined overhead absorption rate = $25.65 per hour</em>
Total overhead rate = Variable rate + Fixed rate
= $8.52 + $25.65 = $34.17
Total overhead rate = $34.17 per machine hour
Answer: check the attached file for the answer
Explanation:
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Answer:
valuable to a firm even though liquid assets tend to be less profitable to own
Explanation:
Which statement is generally true of an investment that is highly volatile but has superior, long-term real rates of return?
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It has low liquidity because selling would often require selling at a loss.
High volatile investments are investments that always fluctuates in the market. It can generate you very high income or very low income. It has low liquidity because when you sell it right away, you tend to sell at a loss.</span>
