Answered: What does the EOQ decision model help…

What does the EOQ decision model help managers do? 2- Why are companies using just-in-time purchasing? 3- What are the main features of JIT production?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter23: Other Topics In Working Capital Management

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: What is the difference between absorption costing and variable costing? 2. Distinguish between…

A: Cost accounting: It is a part of managerial accounting and is used to record total cost of…

Q: Under Just-in-time inventory system and Backflush Costing, what costing method is ideally employed

A: Under Just-in-time inventory system and Backflush Costing, Standard Costing method is ideally…

Q: 1. "Cost accounting is a form of managerial accounting that aims to capture a company's total cost…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Which of the following is not a key difference between front office and back office? Select one: i.…

A: Front office and back office are two integral parts of any firm. Front office is the one which…

Q: What benefits and drawbacks are there for a business that uses a Standard/Traditional Costing model?

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Which of the following would be an example of bootstrapping for operating costs? (1) Utilize just in…

A: Bootstrapping is something which puts all the financial risks on the entrepreneur and the extremely…

Q: Which of the following is a major difference between the just-in-time (JIT) and traditional…

A: Traditional manufacturing system is based on the old approach of purchasing and manufacturing. JIT…

Q: 1) Use Marginal costing to calculate the total value of the finished goods inventory at the end of…

Q: First: The inventory value shown on the balance sheet is generally higher under absorption costing…

A: Under variable costing, product cost consists of only variable manufacturing costs. Under…

Q: Effects of differing production levels on absorption costing income: Metrics to minimize inventory…

A: Absorption costing is the method of coating which charges all the manufacturing cost which may be…

Q: Which of the following would not be a period cost? Group of answer choices Sales commissions.…

A: Period costs include those costs which cannot be directly associated with the manufacturing of the…

Q: In target costing, prices determine costs rather than vice versa." Explain. Question content…

A: Target costing involves the calculation of an allowable product cost to earn a predetermined amount…

Q: Why is variable costing not in compliance with generally accepted accounting principles? a. Fixed…

A: The generally accepted accounting principles are following the absorption method for the valuation…

Q: Why do you think a company would ever choose to use perpetual LIFO as its costing method? It is…

A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a…

Q: S1: Abnormal spoilage is considered a period cost. S2: Backflush costing requires fewer allocations…

A: Product costs are direct costs incurred in producing the product and can be directly allocated to…

Q: (a) Based on new number of orders in Requirement 2, what is the customer margin under activity-based…

A: ABC stands for Activity based costing which is the method that assigns the overhead as well as…

Q: . What is the major advantage of using a perpetual inventory system? a. It provides efficient…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Keeping track of inventory and keeping carrying costs down. How do you think those issues would…

A: If business organized their inventory management system, the warehousing cost tends to be reduced…

Q: A. The trend for cost of goods sold is increasing as a percentage of sales and the trend for total…

A: Cost of goods sold are the direct allocated cost to the goods manufactured, which have been solved…

Q: In making short-term business decisions, what should you do? a. Use a traditional costing approach.…

A: Business decision refers to large part of conducting business is making decisions.

Q: Many companies recognize that their cost systems are inadequate for today's powerful global…

A: The cost of a corporation's inventory at the conclusion of an accounting period is known as…

Q: Many companies recognize that their cost systems are inadequate for today's powerful global…

A: The traditional costing method uses a single overhead recovery rate while in the case of ABC…

Q: Inventory costing system differ for different organizations. All organization adopt two basic…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want a…

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: Companies enjoy many benefits of using JIT. Which is not a benefit of adopting JIT? Ability to…

A: Just-in-time manufacturing system: Just-in-time (JIT) manufacturing system is an approach to…

Q: An inventory system that organizations use to increase efficiency and decrease waste is ________.…

A: Ans. There are few business practices which are followed after researches and are studied upon about…

Q: ) What is the ending inventory (February) under variable costing? 2) What is the ending inventory…

A: The entity uses two types of costing systems, which are as follows: (1) Variable costing…

Q: A company that uses a just in time inventory system: A) has finished goods inventory on hand at…

A: The JIT inventory system provides more efficient use of working capital and enhances cash flow

Q: Which of the following results in fewer transactions in lean accounting? Oa. The distinction between…

A: Lean Accounting refers to the type of management accounting system which reflects the much needed…

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: If a company chooses a price to charge for its product by adding up all the expenses necessary to…

A: Solution: There are various method of pricing the product such as: 1. Target costing 2. Skimming…

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

A: Option no. (b) is correct.

Q: Many companies have significantly lowered inventory levels and costs by a) using enterprise resource…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Explain why some management accountants believe that absorption costing may provide an incentive for…

A: Absorption costing Absorption costing is an accounting method which helps in computing the total…

Q: Effects of differing production levels on absorption costing income: Metrics to minimize inventory…

Q: c) Your manager recently attended a seminar where one of the speakers asked the following question…

Q: Variable costing has an advantage over absorption costing for which of the following purposes? all…

A: Under variable costing, the product cost consists of the variable cost incurred and total fixed cost…

Q: Companies enjoy many benefits from using JIT. Which is not a benefit of adopting JIT? a. Ability to…

A: Just-in-time manufacturing system: Just-in-time (JIT) manufacturing system is an approach to…

Q: Explain why the majority of businesses use full-costing systems whilst most management accounting…

A: Full Costing:- Full costing is a method of accounting where it accounts for all costs, both fixed…

Q: a) What is the customer margin under activity-based costing when the number of orders increases to…

A: In the given question Office Mart Order consists of following Customers 1 Customer Orders 11…

Question

1- What does the EOQ decision model help managers do?

2- Why are companies using just-in-time purchasing?

3- What are the main features of JIT production?

4- How does backflush costing simplify traditional inventory costing?

5- How is lean accounting different from traditional costing systems?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

EOQ decision model

Just in time

Features of JIT

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following describes the economic order quantity (EOQ)? a. It is associated with a pull inventory system. b. It is the heart of a JIT purchasing system. c. It minimizes total ordering and carrying costs. d. It minimizes stock-out costs.
An inventory system that organizations use to increase efficiency and decrease waste is ______________________________. corporate social responsibility just-in-time manufacturing total quality management Lean Six Sigma
Explain how lowering inventory produces better products, lower prices, and better responsiveness to customer needs.
Which of the following is an advantage of the periodic inventory system? A. frequent physical inventory counts B. cost prohibitive C. time consuming D. real-time information for managers
Discuss how, as warehouse manager for Vinnies Vinyls, you view the different rate of allocated costs the warehouse is being charged compared to the West store. Describe the implications of this. What steps could you take to solve this discrepancy? What alternatives would you consider, assuming management is willing to consider making changes in the rate?
1. Compute the unit product cost under absorption costing. 2. Compute the net income under absorption costing. 3. What will be the value of the ending inventory if the company is using absorption costing?
S1: Abnormal spoilage is considered a period cost.S2: Backflush costing requires fewer allocations than traditional accounting methods.S3: Lean manufacturing and just-in-time (JIT) systems are both concerned with reduction of inventory levels. Group of answer choices True; False; False True; True; False False; True; True False; False; True False; False; False True; True; True
Whenever the units manufactured differ from the units sold, finished goods inventory is affected. In analyzing operating income, such increases and decreases could be misinterpreted as operating efficiencies or inefficiencies. Each decision-making situation should be carefully analyzed in deciding whether absorption or variable costing reporting would be more useful. All costs are controllable in the long run by someone within a business. For a given level of management, costs may be controllable costs or noncontrollable costs. The production manager for Saxon, Inc. is worried because the company is not showing a high enough profit. Looking at the income statements on the Absorption Statement and the Variable Statement, he notices that the operating income is higher on the absorption cost income statement. He is considering manufacturing another 10,000 units, up to the company’s capacity for manufacturing, in the coming year. He reasons that this will boost operating income and satisfy…
What is true in explaining ABC analysis? This process divides items into three classes according to their inventory level Class A items normally have the least dollar usages Class B and class C account for most of inventory items but not dollar usages Class C accounts for the largest dollar usage of any class Which one of the following is a reason to have small inventories? To improve customer service To reduce ordering costs To reduce equipment setup costs To reduce interest expense or opportunity costs
Info in images (a) What is the customer margin under activity-based costing when the number of orders increases to 11? (Enter a loss as a negative amount.) Customer margin under activity-based costing [ ] (b) What is the product margin under the traditional costing system when the number of orders increases to 11? (Enter a loss as a negative amount.) Product margin under the traditional costing system [ ] (c) Which of the following statements are true? (You may select more than one answer.) check all that apply If a customer orders more frequently, but orders the same total number of units over the course of a year, the customer margin under activity based costing will decrease.unanswered If a customer orders more frequently, but orders the same total number of units over the course of a year, the product margin under a traditional costing system will decrease.unanswered If a customer orders more frequently, but orders the same…
Variable costing has an advantage over absorption costing for which of the following purposes? all of the choices mentioned analysis of profitability of products, territories, and other segments of a business determining the CVP relationship among the major factors of selling price, sales mix, and sales volume minimizing the effects of inventory changes on net income
Explain why some management accountants believe that absorption costing may provide an incentive for managers to overproduce inventory.