How are we going to answer without the choices?
Answer:
Comparability means using the same accounting principles from year to year within a company.
Explanation:
Comparability is a term often used in accounting operation to describe the degree or level to which the information shown in the financial statements of a particular company is relative or comparable with other various companies, over a given period of time.
Hence, in this case, the correct answer is "Comparability means using the same accounting principles from year to year within a company." Because the statement is not CORRECT.
Letter A and B are absolutelly incorrect. I think it is C... Not sure
Answer:
Order size = 23 cars
The number of orders = 23
Explanation:
The economic order quantity (EOQ) is the order size that reduces the balance of holding and ordering cost. It is to be noted that at EOQ, the carrying cost is equal to the holding cost.
The EOQ is computed as shown below;
= √ 2 × Co × D)/Ch
Co = Ordering cost
D = Annual demand
Ch = Carrying cost
EOQ = √ 2 × 500 × 529 / 1,000
EOQ = 23
Number of cars to be ordered per time, I.e optimal order size = 23
Order size = 23 cars
2. The number of times orders should be placed per year would be calculated as;
Number of orders = Annual demand / Order size
Number of orders = 529 / 23
Number of orders = 23
