FIFO assumes that inventory costs flow in the order incurred.
Answer the following statement true (T) or false (F)
True
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A printing company estimates that it will require 1,000 reams of a certain type of paper in a given period. The cost of carrying one unit in inventory for that period is 50 cents
The company buys the paper from a wholesaler in the same town, sending its own truck to pick up the orders at a fixed cost of $20.00 per trip. Treating this cost as the order cost, (a) what is the optimum number of reams to buy at one time? (b) How many times should lots of this size be bought during this period? (c) What is the minimum cost (holding and setup) of maintaining inventory on this item for the period? (d) Of this total cost, how much is carrying cost and how much is ordering cost?
A business thinking of expanding into global markets needs to examine all of the following external environments EXCEPT:
A. culture B. political structure and actions C. its marketing mix D. natural resources E. demographic makeup
Herrell Corporation manufactures numerous products, one of which is called Delta11. The company has provided the following data about this product: Unit sales (a) 110,000 Selling price per unit$29.00 Variable cost per unit 19.00 Contribution margin per unit (b)$10.00 Total contribution margin (a) × (b)$1,100,000 Traceable fixed expense 1,010,000 Net operating income$90,000 ?Management is considering increasing the price of Delta11 by 5%, from $29.00 to $30.45. The company's marketing managers estimate that this price hike would decrease unit sales by 10%, from 110,000 units to 99,000 units. Assuming that the total traceable fixed expense does not change, what net operating income will product Delta11 earn at a price of $30.45 if this sales forecast is correct?
A. $123,550 B. $1,259,500 C. $1,133,550 D. $249,500
What are financial derivatives?
What will be an ideal response?