Which of the following is NOT true regarding period order quantity method (POQ) of lot sizing?
A) POQ is better suited to lumpy demand than EOQ.
B) The order quantity is constant.
C) POQ is derived directly from the EOQ.
D) The time interval of inventory coverage is constant.
E) POQ and EOQ will try to order the same number of times per year.
B
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On average, what percentage of customers complains when they are unhappy with service?
a. 0 percent b. 5–10 percent c. 15–25 percent d. 30–50 percent e. 60–75 percent
A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools: Budgeted ActivityActivity Cost PoolBudgeted CostProduct AProduct BActivity 1$87,000 3,000 2,800 Activity 2$62,000 4,500 5,500 Activity 3$93,000 2,500 5,250 Annual production and sales level of Product A is 34,300 units, and the annual production and sales level of Product B is 69,550 units. What is the approximate overhead cost per unit of Product A under activity-based costing?
A. $2.00 B. $2.33 C. $10.28 D. $15.00 E. $3.00
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