Q. If the demand in units are 18000, relevant ordering cost for each year is $150 and an order quantity is 1500, then annual relevant ordering cost would be

View solution

Q. If the relevant opportunity cost of capital is $2950 and the relevant carrying cost of inventory is $6700, then the relevant incremental cost will be

View solution

Q. The profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as

View solution

Q. An example of shrinkage costs is

View solution

Q. If the relevant incremental costs are $5000 and the relevant opportunity cost of invested capital is $2500, then the relevant inventory carrying costs would be

View solution

Q. An average inventory in units is multiplied with annual relevant carrying cost of each unit to calculate

View solution

Q. A push through system, according to which goods are manufactured for finished inventory solely, on the basis of forecasted demand can be classified as

View solution

Q. The relevant incremental costs are added into the relevant opportunity cost of capital to calculate

View solution

Q. If the economic order quantity for one year is 15000 packages and demand in units for one year are 1500 units, then number of deliveries in a year will be

View solution

Q. The number of purchase orders for each year is multiplied to relevant ordering cost for each purchase order to calculate

View solution

Q. The costing system, which omits some of the journal entries in accounting system is known as

View solution

Q. The decision model to calculate optimal quantity of inventory to be ordered is called

View solution

Q. The stage in manufacturing cycle at which journal entries are made in system of accountancy is known as

View solution

Q. If the required rate of return is 12% and the per unit cost of units purchased is $35, then the relevant opportunity cost of capital will be

View solution

Q. The method of costing that supports creation of value for customer by accounting whole value stream, rather than individual departments or products is classified as

View solution

Q. The reorder point is divided by number of sold units for per unit of time to calculate

View solution

Q. Buying of goods or materials for production in a way that they are delivered directly on the manufacturing facility of company is called

View solution

Q. The purchase order lead time is multiplied to the number of units sold per unit of time, to calculate

View solution

Q. The costs of issuing purchase orders, making of delivery records for tracking payments and costs of inspection of items are classified as

View solution

Q. The relevant ordering costs are added into relevant carrying costs to calculate

View solution