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Vladimir79 [104]
2 years ago
14

Property, plant, and equipment and intangible assets are:

Business
1 answer:
Dmitrij [34]2 years ago
6 0

Answer:

d. Long-term revenue-producing assets.

Explanation:

Long term assets are assets that aren't expected to be changed into cash or used up in production activities during the operating cycle of a firm. They include : Property, plant, and equipment and intangible assets.

Current asset are assets that are expected to be changed into cash or used up in production activities during the operating cycle of a firm. They include cash , inventory and account receivable.

I hope my answer helps you.

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A manufacturer is contemplating a switch from buying to producing a certain item. Setup cost would be the same as ordering cost.
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Answer

D) compared to the EOQ, the maximum inventory would be approx 30% lower.

Explanation

EOQ = √(2*Co*D/Cc)

EPQ= √ (2*Co*D/(Cc*(1-x)))

x=D/P

D = demand rate

P =production rate

Co=ordering cost

Cc=holding cost

1) The production rate would be about double the usage rate.

hence, P = 2D

x=D/2D=0.5

EPQ= √ (2*Co*D/((1-0.5)*Cc))

EPQ= √ (2*Co*D/0.5Cc)

EPQ=√ (1/0.5)*EOQ

EPQ=√ (2)*EOQ

EPQ=1.41*EOQ

Hence, EPQ is around 40% larger than EOQ.

Ans.: c) EPQ will be approximately 40% larger than the EOQ.

2) Compared to the EOQ, the maximum inventory would be

maximum inventory = Q

EPQ = 1.41 EOQ

EPQ = 1.41*Q

Q=EPQ/1.41

Q=0.71 EPQ

Hence, compared to EOQ, maximum inventory in EPQ is only 70% of that in EOQ model.

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