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Economic Order Quantity
This constitutes the quantity purchased of either raw materials or stocks which is considered most optimum. It is the quantity such minimizes both ordering costs and holding costs, like the quantity of purchase rises there is a reduction in ordering costs, however a raise in holding costs as demonstrate in the graph below as:
Net cost = Net ordering costs + Net holding costs
Net ordering costs = cost per order X no of orders in a period
Net holding cost = average stock quantity X holding cost per unit
Kenner company produces two products: SR200 and TX500. Budged sales for four months are as follows; SR200 TX500 May 8,000 20,000 June 13,000 32,000 July 11,000 39,000 August 18,000
are eploration costs of a mining industry regarded as an asset or expense or both?
fifo method
Total costs include both variable costs and fixed costs. Variable costs are costs which can beeasily identified or related to a cost per unit or activity level of some kind for exa
The time of cashflows for the project are as follows; Operating Income (rent) is received annually, in advance. For NPV purposes they are assumed to have been received at th
All transfer-pricing methods give the similar division operating income. Do you agree? Describe.
MARGINAL COSTING AND DIFFERENTIAL COSTING 1. Differential costing can be used both in case of marginal costing and absorption costing. 2. In case of marginal costing
is sale of salvage from capital project recorded as gain/loss or applied back to project costs
Allocation of Joint Costs Whereas two or more products of relatively high value emerge simultaneously from a single process, they are named as joint products. The processes s
You are considering starting a walk-in-clinic. Your financial projections for the first year of operations are as follows: Revenues (10,000 visits) $400
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