The decision model to calculate optimal quantity of inventory to be ordered is called ____________? April 20, 2025 by admin A. efficient order quantity B. economic order quantity C. rational order quantity D. optimized order quantity
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 ____________? April 20, 2025 by admin A. $6.20 B. $7.20 C. $4.20 D. $5.20
Buying of goods or materials for production in a way that they are delivered directly on the manufacturing facility of company is called ____________? April 20, 2025 by admin A. economic order quantity purchasing B. annual purchasing C. just in time purchasing D. both a and b
The costs of issuing purchase orders, making of delivery records for tracking payments and costs of inspection of items are classified as _____________? April 20, 2025 by admin A. stock-out costs B. ordering costs C. carrying costs D. purchasing costs
If the purchase order lead time is 35 minutes and number of units sold per time is 400 units, then reorder point will be ____________? April 20, 2025 by admin A. 14000 units B. 14500 units C. 15000 units D. 15500 units
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 __________? April 20, 2025 by admin A. economic accounting B. back-flush accounting C. lean accounting D. lead accounting
The number of purchase orders for each year is multiplied to relevant ordering cost for each purchase order to calculate _____________? April 20, 2025 by admin A. annual irrelevant ordering costs B. annual relevant carrying costs C. annual relevant ordering costs D. annual irrelevant carrying costs
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 ____________? April 20, 2025 by admin A. $7,500 B. $7,000 C. $6,500 D. $6,000
The profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as ____________? April 20, 2025 by admin A. relevant purchase order costs B. relevant inventory carrying costs C. irrelevant inventory carrying costs D. relevant opportunity cost of capital
The costs of goods acquired from suppliers are classified as ___________? April 20, 2025 by admin A. stock-out costs B. ordering costs C. carrying costs D. purchasing costs
