If the steps are small, a step-variable cost may be approximated using a Variable cost function without significant loss in accuracy.
<h3>Variable cost function</h3>
- An expense for the company that varies according to how much is produced or sold is called a variable cost.
- Depending on a company's production or sales volume, variable costs grow or fall. They climb as production rises and reduce as production declines.
- It is a production cost whose level fluctuates in response to shifts in a business's manufacturing activities.
- For instance, the raw materials required to make a product's components are regarded as variable costs because they frequently change depending on the volume of units produced.
- The total variable cost curve depicts the relationship between total variable cost and the volume of output produced graphically.
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Answer:
Safety stock
Explanation:
Safety stock defines When the lead time for delivery of the item rises in a typical inventory reordering situation, the safety stock would need to be increased if the possibility of stockout is to remain unchanged.
Therefore, according to the given situation the correct answer is safety stock as The lead time of the item improves, the safety stock would need to be increased if the risk of stockout inventory remains the same
Answer:
77.48 units
Explanation:
Data provided in the questions
Annual demand = 395 units
Ordering cost = $38
Holding cost per unit per year = $5
The computation of the economic order quantity is shown below:
= 77.48 units
hence, the economic order quantity is 77.48 units
We simply applied the above formula so that approximate units could come. And it always expressed in units
Answer:
It is acknowledging a cultural symbolism about the number 13
Explanation:
A cultural symbol is an object, a behavior or a word that has a particular meaning in a culture. In Germany the number 13 is considered an unlucky number and they prefer not to use it and this is a cultural symbol. So, according to this, the answer is that the firm is acknowledging a cultural symbolism about the number 13.
Answer:
Financial managers are responsible for the financial health of an organization. They produce financial reports, direct investment activities, and develop strategies and plans for the long-term financial goals of their organization. Financial managers typically: ... Help management make financial decisions.
