Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Example of Economic Order Quantity
The EOQ model supposes:
- Annual demand is recognized
- Hold costs are constant and recognized
- Ordering costs are recognized and constant
- The same quantity is ordered every instance an order is made as demand as assumed not to fluctuate considerably.
Example
ABC Ltd has an aggregate demand of 1.2 Million units. All time they put an order there is an ordering cost of shs 1,000, holding cost is shs 100 per unit. Find out:
i. EOQ
ii. No. of order to be made based EOQ
iii. Net cost of stocks based on the EOQ
Solution
EOQ = √(aDCo/Ch)
= (2 x 1200000 x 1000)/100
= 489 units
i) No of order = 1200000/4899
= 244.9
≈ 245 Orders
ii) Net cost = DCo/Q + (½ QCh)
= 1200000 (1000) /4899 + ½ (4899)100 = 489,900
Choice of Budget Flexing Basis The most suitable flexing basis must be considered where it assists in the comparison of alternative budget data at the planning stage and for
Example of Over and under absorption of production overhead costs By employing data from diagram assume such the production overhead absorption rate was computed where an acti
Cost Flow Relationships The following information is available for the first month of operations of Url Inc., a manufacturer of art and craft items: Sales $886,900 Gross profit
What is callable preferred stock? Why do corporations issue such stock? Given the different features that are associated with stock (callable, cumulative, preferred, etc.), what ty
Q. Show the Profit volume charts? A variation of a break-even chart, representing graphically the relationship between profit &losses at different levels of sales volume achiev
Physical Measure and Net Realizable Value Physical Measure/Unit Joint costs are assigned to the joint products according to the ratio of physical measurement of the outpu
What do you mean by differential costing ? How it differ from marginal costing ? explain its practical application with examples?
You are a beginner accountant with a large accountancy firm and a training day has been organised to update all technical staff on a range of topics across numerous technical disci
This is defined as an actual amount paid or incurred, as opposed to estimated cost or standard cost. In contracting, actual costs amount includes direct labor, direct material, and
We consider two regions A and B. Each market has the same size (i.e. number of consumers) but differs in the willingness to pay for one unit of the good proposed by the firm. On ma
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd