The optimal order quantity as determined by the EOQ occurs when ________
A) ordering costs equal carrying costs
B) ordering costs are exactly 1/2 of carrying costs
C) ordering costs are exactly twice as much as carrying costs
D) None of the answers provided is accurate.
Answer: A
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Sullivan Company uses the periodic inventory system. The following balances were drawn from the accounts of Sullivan Company prior to the closing process: Sales revenue$24,000 Beginning inventory balance 6,400 Purchases 16,000 Transportation-in 800 Transportation-out 1,200 Purchase discounts 400 Ending inventory balance 7,200 What is the gross margin that will be shown on the income statement?
A. $15,600 B. $7,200 C. $18,400 D. $8,400
The amount of planned work scheduled and actual work assigned to a production facility for a specific period of time is called a ______.
a. sublot b. load c. batch d. lot
Krepps Corporation produces a single product. Last year, Krepps manufactured 20,000 units and sold 15,000 units. Production costs for the year were as follows: Direct materials$170,000Direct labor$110,000Variable manufacturing overhead$200,000Fixed manufacturing overhead$240,000 Sales totaled $825,000 for the year, variable selling and administrative expenses totaled $108,000, and fixed selling and administrative expenses totaled $165,000. There was no beginning inventory. Assume that direct labor is a variable cost. Under absorption costing, the ending inventory for the year would be valued at:
A. $0 B. $180,000 C. $248,250 D. $216,000
A banker's acceptance is an order to pay a specified amount of money to the bearer on a given date. Banker's acceptances have been used since the twelfth century
Indicate whether the statement is true or false