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svp [43]
3 years ago
7

. For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model is 200 units, and the total annual in

ventory (carrying and setup) cost is $600. What is the inventory carrying cost per unit per year for this item? A. $2.00 B. $3.00 C. $4.00 D. $6.00 E. $8.00
Business
1 answer:
Zielflug [23.3K]3 years ago
4 0

Answer:

Inventory cost will be $3

So option (b) is correct option

Explanation:

We have given that carrying and setup cost is $600

So carrying and setup cost = $600

And EOQ = 200 units

We have to find the inventory carrying cost per year

We know that inventory carrying cost is given by

inventory carrying cost =\frac{carrying\ and\ setup\ cost}{EOQ}=\frac{600}{200}=$3

So option (b) will be correct option

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3 years ago
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Operating costs incurred by a manufacturing company become either (1) part of the cost of inventory to be expensed as cost of go
Lana71 [14]

Sales salaries are expensed at the time they are incurred.

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4 0
1 year ago
Which of the following is not a part of the definition of market value used by federal financial institutions?a) Buyer and selle
lubasha [3.4K]

Answer:

b) The property sells in 90 to 120 days

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It state a reasonable time, but does not specifies any duration.

Explanation:

The law indicates 5 conditions to determinate the market value, which is the most probable price which a property can be traded:

(1)  Buyer and seller are typically motivated; (is listed as a)

This means seller want to sale at high as possible, buyer purchase as lowest as possible, they are not colluding, they are motivated to do the transaction in their best interest

(2)  Both parties are well informed or well advised, and acting in what they consider their own best interests; (listed as d)

Both parties know the market, they know the characteristics of the real state.

(3)  A reasonable time is allowed for exposure in the open market;

Notice the diference with option b. Which is giving an specific duration. Opcion C is not correct.

(4)  Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (option c)

The property is being trade for cahs or cash equivalent.

(5)  The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

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7 0
3 years ago
K Company estimates that overhead costs for the next year will be $3,700,000 for indirect labor and $960,000 for factory utiliti
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Answer:

Predetermined manufacturing overhead rate= $37.28 per direct labor hour

Explanation:

Giving the following information:

Estimated overhead= 3,700,000 + 960,000= $4,660,000

Estimated direct labor hours= 125,000

<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>

<u></u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 4,660,000/125,000

Predetermined manufacturing overhead rate= $37.28 per direct labor hour

8 0
2 years ago
At what age does the "settling" process begin with regard to height?
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