Orders per year , Managerial Accounting

Lila Battle has determined that the annual demand for number 6 screws is 100,000 screws. Lila, who works in her brother's hardware shop, is in charge of purchasing. She estimates that it costs $10 each time an order is placed. This cost contains her wages, the cost of the forms used in placing the order, and so on. Moreover , she estimates that the cost of carrying 1 screw in inventory for a year is one-half of 1 cent. Suppose that the demand is constant throughout the year.

 

(a) How many number 6 screws should Lila order at a time if she wishes to decrease total inventory cost?

(b) How many orders per year would be placed? What would the yearly ordering cost be?

(c) What would the average inventory be? What would the yearly holding cost be

 

Posted Date: 3/21/2013 2:07:45 AM | Location : United States







Related Discussions:- Orders per year , Assignment Help, Ask Question on Orders per year , Get Answer, Expert's Help, Orders per year Discussions

Write discussion on Orders per year
Your posts are moderated
Related Questions
Question: (a) A retail store wants to evaluate how many units it must sell in order to earn a profit of Rs 10000 per month if the price of the unit is Rs 300, the average varia

Explain Kaizen costing It is a Japanese method used to manage cost during a product s planning and design stages and has been used by some Japanese firms for over twenty years

Explain the terms - maintenance and improvement Maintenance ; under the maintenance function, the management must first establish policies rules directives and standard operat

Strategic Positioning The company must identify its strategic choices. This can be done from the firm’s objectives, which emanates from the firms mission. Strategies have to be


Explain Indirect expanses: These are expanses which can't be directly conveniently and wholly allocated to a specific cost centres or cost units examples of such expanses are h

Cash management is related along with the management of: Cash outflows and inflows of the firm Cash flows inside the firm Cash balances as financing deficit and inve

company jobcosting system

Product life cycle Every product has a life cycle. The life cycle of a product vary from months to various years. For example in the case of cameras photocopying machines etc.

Transportation model Table A more compact method for representing the transportation model than the linear equations is to use what we call the transportation tableau. It is a