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Lila Battle has determined that the annual demand for number 6 screws is 100,000 screws. Lila, who works in her brother's hardware shop, is in charge of purchasing. She estimates that it costs $10 each time an order is placed. This cost contains her wages, the cost of the forms used in placing the order, and so on. Moreover , she estimates that the cost of carrying 1 screw in inventory for a year is one-half of 1 cent. Suppose that the demand is constant throughout the year.
(a) How many number 6 screws should Lila order at a time if she wishes to decrease total inventory cost?
(b) How many orders per year would be placed? What would the yearly ordering cost be?
(c) What would the average inventory be? What would the yearly holding cost be
What are the Objectives of Intra company transfer pricing The objectives of Intra company transfer pricing are: 1) Evolution of performance and efficiency of each division.
how to journalize entry. purchased $150,000 of raw materials on account, terms of 2/20; n/30
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Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4 What is the Meaning Cos
1. Explain the modern control methods with examples. 2. What are the reports produced for performance measurement? Demonstrate.
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