If capacity is expensive and inventory is cheap, a good reason to hold inventory is to level load capacity by using inventory as a buffer between demand variability and capacity utilization-<u>The statement is true</u>
Explanation:
<u>Capacity management</u> can be defined as the act of management to ensure maximization of the product output and the potential activities associated with production,under all the given circumstances
The<u> capacity of a business measures</u> how much the business can achieve, produce, or sell within a given time period.It refers to the maximum output rate a company can produce
<u>Load capacity</u> is use to define the maximum demand, stress, or load that can be placed/leveled on a given system under normal or specified conditions for an extended period of time.
Answer:
Dept Y = $7750
Dept Z = $6250
Explanation:
To allocate the cost the cost , the first step is to deduct the indirect expenses related to Y
The allocate the balance in the ratio of 50:50 to Y and Z
Total delivery expenses - $14,000
Dept Y = 1500 +( 12500*50%)
1500+6250 =7750
Dept Z = 6250
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Answer: Yes, because negative correlation coefficient implies there is negative correlation between quantities.
Explanation:
Correlation is a term we use to define the strength and direction of relation ship between two variables.
Negative correlation coefficient means there is a negative correlation between the variables , that is if one increases the other decreases.
Here, variables are : " investment in the textile" and "average temperature in Minnesota during January "
So -0.60 defines that there is negative correlation between the investment in the textile and the average temperature in Minnesota during January.
Answer:
Cost of goods sold= $3,870
Explanation:
Giving the following information:
beginning inventory of 430 units at $18 per unit.
The company purchases:
February= 565 units at $30 each
October= 460 units at $19
Laurel sells 215 units during the year.
Under the FIFO (first-in, first-out) method, the cost of goods sold is calculated using the cost of the firsts units incorporated into the inventory.
Cost of goods sold= 215*18= $3,870
