If the variables in the EOQ inventory model are defined as: S = total units demanded during the
planning period, O = ordering costs per order, C = carrying costs per unit and Q = inventory order
size in units, then the average level of inventory
which a company should have during the
planning period is
A) 1/2 S. B) 2/3 Q. C) 1/2 Q. D) SO/C.
C
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Evan's Electronics Boutique sells a digital camera. The following information was reported for the digital camera last month: Sales$17,600Variable expenses 9,680Contribution margin 7,920Fixed expenses 3,600Net operating income$4,320Evan's margin of safety in dollars and percentage are closest to:
A. $9,600 and 120% B. $8,000 and 45% C. $9,600 and 55% D. $8,000 and 83%
The ________ system of accounting records revenues when they are earned and records expenses when they are incurred
a. cash b. accrual c. single–entry d. double–entry
Which of the following printing processes is most restrictive in terms of the number of copies that can be made from one master?
A Xerographic process B. Spirit process C. Mimeograph process D. Offset process
Courington Detailing's cost formula for its materials and supplies is $2,420 per month plus $9 per vehicle. For the month of August, the company planned for activity of 63 vehicles, but the actual level of activity was 33 vehicles. The actual materials and supplies for the month was $2,840.The materials and supplies in the flexible budget for August would be closest to:
A. $2,717 B. $2,987 C. $2,840 D. $1,565