Answer:
Low-return investments have a greater risk of failing to grow at all.
Nope
many managers are great but also plenty are horrible
Answer:
D) is used exclusively in manufacturing
Explanation:
- As the processing costs are directly related to the direct and the indirect costs of the manufacturing processes. These costs are usually assigned to large scale batch processings and assigned to every individual cost of each unit. Assigned when the company processes huge homogeneous products.
<u>Thus has the following four steps</u>:
1. Summarize the flow of all physical units of the output.
2. Compute the output in the terms of the equivalent units.
3. Summarize total costs to the account for and the Compute equivalent unit of costs.
4. Assign total costs to the units completed and to the units in ending work in the process inventory.
Answer:
1. Annual demand ( D) = 100,000 bags
Ordering cost per order (Co) = $15
Holding cost per item per annum (H) = 15% x $2 = $0.30
EOQ = √<u>2DCo</u>
H
EOQ = √<u>2 x 100,000 x $15</u>
0.30
EOQ = 3,162 units
2. Maximum inventory
= Safety stock + EOQ
= 1,500 + 3,162
= 4,662 units
3. Average inventory
= EOQ/2
= <u>3,162</u>
2
= 1,581 units
4. Number of order
= <u>Annual demand</u>
EOQ
= <u>100,000</u>
3,162
= 32 times
Explanation:
EOQ is the square root of 2 multiplied by annual demand and ordering cost per order divided by holding cost per item per annum.
Maximum inventory is the aggregate of safety stock and EOQ.
Average inventory is economic order quantity divided by 2
Number of order is the ratio of annual demand to economic order quantity.
