Apply your understanding of forecasting to the idea of developing a reorder point for uncertain demand. What could be done to make a reorder point more accurate?
What will be an ideal response?
The reorder point is determined by the average demand during lead time plus the amount of safety stock needed. Safety stock is a function of the service level and the variance in both the demand and the lead time. Reducing variance in demand and lead time will reduce the amount of safety stock required and make a reorder point calculation less of a guess. In general, forecasts farther in the future are less accurate than forecasts in the immediate future. Ability to delay orders or ship more quickly would mitigate the impact of this variance. Forecasts for aggregated products are more accurate than forecasts for individual items, so some degree of standardization would result in better performance for a reorder point.
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Yellow Dog Transit sold an old truck on December 31, 2013, for $18,400 cash. The following data was available when the truck sold: Acquisition cost $75,000 Estimated residual value at time of acquisition 8,000 Accumulated depreciation on December 31, 2013 after adjustment 53,600 When this transaction is recorded, it should include a(n)
a. Loss on Disposal account for $3,000 b. Decrease of $21,400 to the Truck account c. Gain on Disposal account for $3,000 d. Gain on Disposal account for $5,000
Discuss the documents used in a batch processing system
On June 30, 2018, Clooney Printers purchased a printer for $60,000. It expects the printer to last for four years and have a residual value of $9000. Compute the depreciation expense on the printer for the year ended December 31, 2018, using the straight-line method. (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)
A) $12,750 B) $6375 C) $15,000 D) $7438
The bank on which the check is drawn is called the drawer
Indicate whether the statement is true or false