Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Example of Economic Order Quantity
The EOQ model supposes:
- Annual demand is recognized
- Hold costs are constant and recognized
- Ordering costs are recognized and constant
- The same quantity is ordered every instance an order is made as demand as assumed not to fluctuate considerably.
Example
ABC Ltd has an aggregate demand of 1.2 Million units. All time they put an order there is an ordering cost of shs 1,000, holding cost is shs 100 per unit. Find out:
i. EOQ
ii. No. of order to be made based EOQ
iii. Net cost of stocks based on the EOQ
Solution
EOQ = √(aDCo/Ch)
= (2 x 1200000 x 1000)/100
= 489 units
i) No of order = 1200000/4899
= 244.9
≈ 245 Orders
ii) Net cost = DCo/Q + (½ QCh)
= 1200000 (1000) /4899 + ½ (4899)100 = 489,900
what is a cost sheet? what are its advantages?
Optimise Manufacturing Cost Of late it is perceived that in order to optimise manufacturing cost, a product might be designed and financed in one country; its material /compon
General Motors has to raise new capital in one of the following three ways. Using the income tax rate of 32%, find the after-tax cost of new capital in each case. (A) Sell commo
Factors affect Decision Making These decisions need consideration of factors as like A. The level of market possible to be available in future B. The strategy that compe
High-Low method of cost estimation and Number of Photocopies as the cost driver, what would be the resulting cost equation for Maintenance Costs?
Describe briefly the possible causes of: (i) the material usage variance, (ii) the labour rate variance, (iii) the sales volume profit variance.
Cost accounting as a descriptive or analytical discipline
explain the practical application of differential costing with the help of suitable example.
Johnson Farms owns valuable farm land that permits it to make wheat at a lower cost than its competitors. The company reports large profits every year on its accounting statements.
Labour Variances From our basic data, we can calculate the labour variances as given as: i. Labour Rate Variance = (AH x AR) - (AH x SR)
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd