Answer: The correct answer is choice a.
Explanation: The continuous review model works under the assumption that there is a constant demand for a product, regardless of other factors. There is a preset level of inventory, and when it gets to that level the product is automatically ordered and additional items are brought back into inventory. This makes choice a the one that is NOT an assumption - the order quantity is not constant regardless of demand. The item is not ordered until a preset order point is reached.
Answer:
The correct answer is the option: False.
Explanation:
To begin with, the <em>incremental model of decision making process </em>is the theory that states that when managers wants to select a set of new alternatives course in order to establish a new product they tend to choose those that are slightly, or incrementally, different from those that were use in past activities. Therefore that by using this model the managers do not encourage in big risks due to the fact that silghty changes are made in comparisson with the ones made in the past and therefore there will not be big costs.
To continue, in this case where Chrysler Bob Lutz ordered the development of the Dodge Viper without supporting reaserch but because it ''just felt right'' then <u>he was not using the incremental model of decision making process due to the fact that big changes and costs will be caused by the decision of making that new product that never have been done before</u>.
They make more of a profit when it comes to there own brands. With private brands they have to pay when people buy the private brands things. Think of it as renting a house yes your living in this house but you have to pay to live in it.
Answer:
Differential cost = $4 per unit
Explanation:
For a make or buy decision the relevant cash flows include
- the differential variable of the two options
- savings from avoidable fixed costs associated with internal production
Differential cost = internal cost - External purchase price
= 15- 11
<em> = $4 per unit</em>
Answer:
$13,000
Explanation:
The total budgeted cost is $15,000
The cumulative actual cost is $10,000
The cumulative earned value is $12,000
Therefore, the forecasted cost at completion can be calculated as follows
= Cumulative actual cost + ( Budgeted cost-Cumulative earned value)
= $10,000 + ($15,000-$12,000)
= $10,000 + $3,000
= $13,000
Hence the forecasted cost at completion is $13,000
