As an inventory manager, you must decide on the order quantity for an item. Its annual demand is 350 units. Ordering cost is $20 each time an order is placed, and the holding cost is 30 percent of the per-unit price
Your supplier provided the following price schedule.
Price per Unit Order Quantity
$4.00 000 - 199
$3.75 200 - 399
$3.50 400 and more
What is the annual cost discrepancy between the optimal order policy and the second best order policy?
A) Less than $5
B) Between $5 and $10
C) Between $10 and $20
D) More than $20
B
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If Cable Inc receives $23,825 from credit card collections and has an average rate of 4.7% charged by the credit card company, its credit card sales during the period were:
a. $111,978 b. $50,691 c. $25,000 d. $22,705
When there are numerous property and equipment transactions during the year, an auditor planning to set control risk at low usually plans to obtain an understanding of internal control and to perform:
A. extensive tests of current year property and equipment transactions. B. analytical procedures for property and equipment balances at the end of the year. C. tests of controls and extensive tests of property and equipment balances at the end of the year. D. tests of controls and limited tests of current year property and equipment transactions.
As a company's inventory turnover ratio decreases from one year to the next, they will find that the number of days inventory is held before sale:
A) decreases. B) increases. C) stays the same. D) can not be determined.
The DuPont analysis calculates ROE as the product of
A) leverage, market value, and turnover. B) margin, turnover, and leverage. C) profitability, liquidity, and leverage. D) activity, leverage, and debt. E) margin, profitability, and leverage.