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Question a. When should inventory be ordered to avoid from stock shortage? Discuss with practical example. Same examples will be marked zero.
Question b. From the book of records of Zaria Arts, it is found that the average daily requirement of 20 x 30 - 90 grams art paper are 100 reams, the maximum weekly requirements of art paper do not exceed 900 reams and minimum weekly requirements during any week of 6 working days are not likely to fall below 300 reams. The time required to receive supplies is 4 days with minimum time period of 3 days in normal situations. Company has to pay Rs. 10 every time an order is placed. Interest on average inventory is 5% with carrying cost of 7%. Company purchases one ream at Rs. 50. However, in case of emergency, it takes 2 days to receive supplies. Company requires 35000 reams on annual basis.
Required: Calculate maximum and minimum levels, average maximum level and danger level.
Bergen Community College can/will/should use job cost to manage and control its operations just like for-profit corporations.
April and 60 units in May. Crane Plants keeps 10% of the next month's sales as ending inventory. How many units should Crane Plants produce during April?
MFE 6100 - Determine the contribution margin per machine hour that each product generates and What is the current break-even point in units for both products combined?
Lewis Auto Company manufactures a part for use in its production of automobiles. When 10,000 items are produced, the costs per unit are:
Should the Division of Rhine Autos make or buy the component? One of the divisions within Rhine Autos is currently negotiating
Based on your literature findings would you recommend budgeting for contemporary organisations for planning and control purpose? Explain.
Briefly explain how traditional methods of allocating overhead to products might underallocate costs to low-production-volume products.
Using the costs assigned in Requirement 1, calculate the percentage error using the ABC costs as a benchmark. Comment on the value and advantages of this ABC simplification.
What were the total cost per product and the cost per unit of each product in each quarter when production units are the allocation basis?
Create a monthly flexible manufacturing overhead budget for the year ending December 31, 2020, assuming production levels range from 35,000 to 50,000
Compute the predetermined overhead rate under the current method of allocation and determine the unit product cost of each product for the current year.
How do prepare a schedule of expected solutions? Paddu's sales are 35% cash and 65% credit. It collects credit sales 40% in the month of sale, 60% in the month
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