The order size associated with the economic-order-quantity (EOQ) model will necessarily decline if:a. Ordering costs riseb. Storage costs risec. Insurance costs for materials in storage falld. Stockout costs rise

Q: The cost driver for demand creation activity is: a. Value of materials stored b. Number of orders c.…

A: Cost driver: A cost driver is the root  cause of a cost  and total cost is incurred by its effect.

Q: If the ordering cost triples in an EOQ model, while the remaining values stay constant, how will the…

A: Economic Order Quantity is a model which aims to minimize the total inventory cost including the…

Q: The traditional (Volume -based cost systems ) tend to : a. under -cost low -volume products and…

A: Explanation: In traditional volume-based cost system, direct material and direct labour cost are…

Q: Identify if true or false   When inventory decreases, the net operating income under absorption…

A: Costing is a process under which the information about the costs incurred by the business unit is…

Q: Select the correct statement regarding fixed costs.  A) Because they do not change, fixed costs…

A: Fixed costs are the costs that remain constant irrespective of the volume of production.

Q: Calculate the order quantity that would minimize the cost of item Z.

A: Economic order quantity (EOQ), is  the optimum amount of an item that should be ordered at any given…

Q: Calculate: a) The break-even level of production and sales b) The margin of safety

A: Given in the question: Per Desk Amount Direct Materials  €3.00 Direct Labour…

Q: It’s common in the electronics industry for unit costs of raw materials inventories to decline over…

A: LIFO: Under this inventory method, the units that are purchased last, are sold first. Thus, it…

Q: In times of decreasing prices, LIFO will result in ____ costs of goods sold and _____ ending…

A: FIFO: FIFO stands for First-In, First-Out.  In this method inventory purchased first will be sell…

Q: As compared with the FIFO method of costing inventories,does the LIFO method result in a larger or…

A:

Q: When inventories are decreasing, _________ costing will lead to lower profits because…

A: When inventories are decreasing, absorption costing will lead to lower profits because capitalized…

Q: Under EOQ approaches, order costs can be minimised by placing large, infrequent orders for…

A: GIVEN    Under EOQ approaches, order costs can be minimised by placing large, infrequent orders for…

Q: Comparison between incremental revenues and incremental costs is the decision base for: a.…

A: Incremental revenue and incremental cost concept means where while taking any decision , we wants to…

Q: Which of the following performance measures will increase if inventory decreases and all else…

A: Return on investment measures the net earned on the assets employed by the business.

Q: In one modification of the Pigskin problem, the maxi-mum storage constraint and the holding cost are…

A: Given: To explain the change of the optimal production schedule and cost is given as,

Q: Which one of the following variables is not explicitly considered in the computation of the Economic…

A: Economic Order Quantity is entity's optimal order quantity to minimize total costs retated to…

Q: Cost−volume−profit analysis is NOT useful in​ ________.   A. determining the appropriate sales mix…

A: Cost volume profit analysis assesses the impact of different cost and revenue levels on the…

Q: The flow of goods through a production process cannot be at a faster rate than the slowest…

A: The Theory of Constraints is a method for determining the most significant limiting factor (i.e.,…

Q: Under variable costing a. Net income will tend to vary inversely with production changes b. Net…

A: DM=Direct materials OHD=Overhead   Step 1   Variable costing is a method that only allocates…

Q: In the cost-volume-profit graph,a. the break-even point is found where the total revenue curve…

A: A graphical representation of the relationship between production costs and total sales is shown by…

Q: Which of the following statements is true? OA. When a large proportion of income is spent on a…

A: To find: which of the following statement is true

Q: variable costing

A: What will be the difference in net earnings computed using variable costing as opposed toabsorption…

Q: Give an example of how, under absorption costing, operating income could fall even though the unit…

A: Definition:   Absorption Costing: The absorption costing is a method used to allocate the fixed…

Q: Product costs under variable costing are typically: Group of answer choices A. higher than under…

A:

Q: The fundamental EOQ model a. provides for fluctuating lead times during reorder cycles. b. is…

A: EOQ (Economic order quantity): A decision much out the great inventory management. the quantity to…

Q: CVP analysis makes all of the following assumptions except     a change in volume is the only…

A: In order for a CVP analysis to be accurate, certain assumptions must be met. These assumptions are:…

Q: Inventory values calculated using variable costing as opposed to absorption costing will generally…

A: Inventory is referred to as current asset which includes raw materials, work in process inventory…

Q: costs assigned to units in inventory are typically lower under absorption costing than under vanable…

A: As per the guidelines, only one question is allowed to be solved so I am answering the first…

Q: b order to attract investors and borrow on attractive terms, a company would use in times when…

A: When the cost of inventory is raising, the cost of holding old stock will get higher.  The inventory…

Q: Sales Less: Cost of goods so Fixed overhead cos Variable production Cost of goods sold Gross margin…

A: The question is based on the concept of Cost Accounting.

Q: :The traditional (Volume-based cost systems) tend t low-volume products and under-cost high-volume…

A: Explanation: In traditional volume-based cost system, direct material and direct labour cost are…

Q: EOQ focuses on the trade-off between A) carrying costs and delivery costs B) seasonality and steady…

A: EOQ is economic order quantity at which cost is minimum. Total cost consist of cost of order and…

Q: Fixed cost are conventionally deemed to be: Select one: a. Those unaffected by inflation b. Constant…

A: Fixed cost means the cost which do not vary with the level of output where as variable cost will…

Q: 1 Adoption of a just-in-time inventory system: O Is based on a demand push theory O Provides an…

A: In case of multiple questions, we are allowed to solve only the first question. If you want other…

Q: . As more warehouses are added to the system, what would we expect to happen to thefollowing?a.…

A: Warehousing : Warehouse is place where the goods that need to be sold or distributed later are need…

Q: Under variable costing: a. Net operating income will always be higher than under absorption costing.…

A: Under variable costing, the inventory cost is valuate on the basis of variable manufacturing cost…

Q: When production exceeds sales, a. Ending inventory under variable costing will exceed ending…

A: Option no. (b) is correct.

Q: uantity order to reduce the overall cost is usually stated as EOQ. why it is related to one time…

A: Step 1   Economic order quantity (EOQ) is the ideal order quantity a company should purchase to…

Q: which of the following is considered a signal of success for a manufacturing company? A) A low quick…

A: The inventory turnover ratio measures the effectiveness of a company’s manufacturing process. This…

Q: In the economic order quantity (EOQ) model, where does the optimal order quantity value exist? O…

A: Economic order quantity is the quantity that is best for the business. It shows the quantity where…

Q: Which of the following statements about the margin of safety is (are) correct? a. producing units…

A: Margin of safety is difference between actual sales and break even sales. Sales of more units…

Q: Which of the following costs increases as the distance of a shipment increases? O a. Fixed O b.…

A: The shipment cost is included in selling expenses.

Q: Which one of the following is a disadvantage of Mass Production system? a. Higher level of inventory…

A: The production systems are classified into three. They are: Job production Batch production and…