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Question - ABC Company uses EOQ to determine the order quantity for its various components and is planning its orders. The annual consumption is 80,000 units, cost to place on order is P 1,200, cost per unit is P 50 and carrying cost is 6% of unit cost. Find EOQ, No. of order per year, ordering cost and carrying cost and total cost of inventory.
What is the total cost, including purchase price of the inventory?
What is the total inventory cost (exclusive of purchase price) for 4,000 units?
Budgets provide the expected/standard cost amounts so that actual costs can be better controlled, why? Explain in detail and provide the suitable example.
You are to determine the selling price. Show your calculations, and discuss why you have determined this to be a good sale price.
What is the goal of the EOQ model, why does a firm hold "safety stock - what costs are a firm trying to balance when it decides on how much safety stock to hold?
Discuss concept of throughput in theory of constraints is appropriate for retail and service industries. How would or could you apply this management technique
A review of the ledger of Obi Company at December 31, 2010, produces the data pertaining to the preparation of annual adjusting entries.
Prepare a schedule of the cost of finished goods manufactured - What is the average per-unit cost of manufacturing this product?
If Fine Line decides to produce the covers, it will need to invest $1,000,000 in new production equipment. Fine Line requires a minimum rate of return of 25% on all investments. Determine the target cost per unit for the cover.
Determine the balance of Raw Materials at the end of the quarter. Raw materials requisitioned during the quarter, 12 000 units of which 10% is indirect material
Determine the cost recovery deduction.
How do Calculate the flexible-budget variance, the spending variance, and the efficiency variance for variable manufacturing overhead.
1. at the end of the year a corporation has a balance in allowance for uncollectible accounts of 230 credit before any
Compute the predetermined overhead rate. Determine the amount of overhead applied for the year. Explain how an activity-based costing system might differ in terms of computing a predetermined overhead rate.
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