Cost and Managment Accounting Mcqs

Determine the types of inventories these companies currently manage and describe their essential inventory characteristics.

Compute the probability of a stock-out for the order quantities suggested by members of the management team.

c. This decreases his optimal stocking quantity because Ralph is allocating $0.03 to the cost of each newspaper, making his cost of understocking now 1-.83-40%*.4=.01. Co=.83 Critical ratio 0.01/.83= 0.012 According to the data, the optimal stocking quantity is Q*=NORMINV(.012,500,100).

company’s finished goods inventory has shot up to a 60 days supply – twice the normal level. In addition,

Accounts receivable (net) increased by $500,000 during the year. This increase has what effect on cash flow?

Part D: Stock shortages = how much inventory was stolen/lost? = Ending retail book value of inventory – physical inventory at retail = $30,000 (calculated in Part C) - $10,000 (given in problem) = $20,000 (in stock shortages) ----------------------------------------------------------------------------------------------------------------------------- --------------------------Part E: Adjusted ending retail book value of inventory = adjusted the value of the retail book value of inventory to reflect the actual physical inventory on hand. This adjusts your books to match what you actually have at the store. = $10,000 (your physical inventory)

Back to speed in production and an efficient operational system and sudden increase change in demand, production requires enough space to store bulk raw materials and a

Starting Inventory plus purchases equal Goods available for sale minus the Ending inventory equal Items sold. Or 50 + 500 – 756 = 475.

Calculate the ending inventory using average cost assuming 400 units remain on hand at May 31. (show calculations)

Direct materials Raw materials inventory ................. $ 0 (Dec. 1) Raw materials purchased ............... 70,000 Less: Raw materials inventory (Dec. 31) .................................... 0 Direct materials used............................... Direct labor .................................................

13) Assume that a government purchases $85,000 of inventory for the General Fund during the year. The General Fund began the year with an inventory balance of $15,000 and ended the year with a balance of $35,000. The General Fund uses the consumption method of inventory accounting and a perpetual inventory system. The General Fund should report

Cost accounting is a type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step of production as well as fixed costs such as depreciation of capital equipment. Cost accounting will first measure and record these costs individually, then compare input results to output or actual results to aid company management in measuring financial performance (Cost Accounting, n.d.).

Would factory security and assembly activities be best classified at an appliance manufacturing plant as unit-level, batch-level, product-level, or organization-sustaining?

goods. They can also be in process between different locations. Holding of inventories can cost a

Raw Materials Throughput R $/Year $/Week Inventory I ($) Flow Time T = I/R (weeks) 50.1 0.96 6.5 6.75