A container of ball-bearings valued at $25,000, currently located in Houston, TX, needs to be delivered to the Morton, IL, plant. The standard shipment method takes two days
However, for an additional charge of $500, the container can be sent overnight to arrive one day later. The annual holding cost rate for this type of item has been estimated at 28%. Which option is more economical?
Daily cost of holding the item is .28(25,000)/365 = $19.18. Since the extra shipping cost is $500, the $19.18 savings does not offset the extra shipping cost. Send the shipment using the standard method.
You might also like to view...
Input validity for ______________________________ is ensured by making sure that the invoice is for goods that were actually ordered and actually received
Fill in the blank(s) with correct word
The Financial Accounting Standards Board has issued statements between:
a. 1960-1973. b. 1939-1959. c. 1973-present. d. 1966-1976. e. None of the answers are correct.
Income statements prepared under U.S. GAAP contain which of the following sections or categories, depending on the nature of a firm's earnings for the period?
a. income from continuing operations b. income, gains, and losses from discontinued operations c. extraordinary gains and losses d. all of the above e. none of the above
In addition to the in-text citation, you should include an alphabetical list of all the works cited in a list found ______________
a. at the end of each page of the document b. before the table of contents c. at the end of the document d. in a separate mailing