In the EOQ model, the average inventory per cycle over many cycles is Q/2. A. True B. False

Answers

Answer 1

Answer:

A. True

Explanation:

An organization would usually measure the volume of its orders in order to meet up with demand while also making sure that the cost per order is maintained at the nearest minimum. The tool used to measure the volume of frequent orders is Economic order quantity(EOQ) .

When inventories are ordered, there will be continuous movement of inventory say from Q(order amount) to zero. This means that the average inventory is Q ÷ 2. Also, the inventory costs for each period is the same as average cost(Q/2) multiply by length of the period.

Related Questions

You decided to buy apples at a grocery store somewhere in the mountains. You buy 5 pounds of apples, which are sold for $1.99/lb. (One pound is the unit of force equal to 0.454 kgx9.80 m/s where g = 9.80 m/s2 is the standard value of the acceleration due to the gravity). You overpaid for the apples, since the value of the acceleration due to the gravity at this mountain location is only gmountain 9.79 mis. Determine how much you overpaid for your 5 pounds of apples.
Consider the following abbreviated financial statements for Cabo Wabo, Inc.: CABO WABO, INC. Partial Balance Sheets as of December 31, 2018 and 2019 2018 2019 2018 2019 Assets Liabilities and Owners’ Equity Current assets $ 3,151 $ 3,367 Current liabilities $ 1,399 $ 2,078 Net fixed assets 14,060 14,511 Long-term debt 7,377 8,419 CABO WABO, INC. 2019 Income Statement Sales $ 45,000 Costs 22,522 Depreciation 3,885 Interest paid 995 a. What is owners’ equity for 2018 and 2019? (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) b. What is the change in net working capital for 2019? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c-1. In 2019, the company purchased $8,038 in new fixed assets. The tax rate is 23 percent. How much in fixed assets did the company sell? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c-2. What is the cash flow from assets for the year? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) d-1. During 2019, the company raised $2,479 in new long-term debt. What is the cash flow to creditors? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) d-2. How much long-term debt must the company have paid off during the year? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
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In October 1, 2019, Westfield, Inc. sold machinery to a customer for $ 25 comma 000. The customer could not pay at the time of sale, but agreed to pay 12 months later, and signed a 12minusmonth note at 11% interest. How much interest revenue was earned during 2019? Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.

The following information relates to Jay Co.’s accounts receivable for 2016: Accounts receivable balance, 1/1/2016 $650,000 Credit sales for 2016 2,700,000 Sales returns during 2016 75,000 Accounts receivable written off during 2016 40,000 Collections from customers during 2016 2,150,000 Allowance for uncollectible accounts balance, 12/31/2016 110,000 What amount should Jay report for accounts receivable, before allowances, at December 31, 2016?

Answers

Answer:

$1,085,000

Explanation:

The computation of the ending account receivable balance is shown below:

= Accounts receivable balance, 1/1/2016 + credit sales - sales returns - written off amount - Collections from customers

= $650,000 + $2,700,000 - $75,000 - $40,000 - $2,150,000

= $1,085,000

Since we have to find out the account receivable balance before allowances so we do not considered it.

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The Skulls, a student social organization, has two different locations under consideration for constructing a new chapter house. The Skulls' president, a POM student, estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows: Location Annual Fixed Variable Alpha Ave. $ 5,000 $ 200 per person Beta Blvd. $ 8,000 $ 150 per person What would be the total annual costs for the Alpha Ave. location with 20 persons living there

Answers

Answer:

The total annual cost for Alpha Ave. at 20 persons is $9000.

Explanation:

The total cost is made up of both the fixed and the variable costs.

The total cost equation for Alpha Ave can be written as,

Total Annual cost = 5000 + 200x

Where x is the number of persons living in the Alpha Ave.

Thus, at 20 persons living in the Alpha Ave, the ytotal annual cost will be,

Total Annual Cost-Alpha Ave. = 5000 + 200 * (20) = $9000

The period before the trial takes place is called the

Answers

Answer:

Explanation:

Pretrial Stage - discovery process, finding of facts. ... Trial Stage - seating of the jury, testimony on behalf of the plaintiffs and testimony on behalf of the defendants

Answer:

Pretrial Stage - discovery process, finding of facts. ... Trial Stage - seating of the jury, testimony on behalf of the plaintiffs and testimony on behalf of the defendants.

Best Brands Appliance Mart is getting ready for its annual Labor Day sale. There are two Best Brands stores, one in midtown Manhattan and another in Amityville. Merchandise is stored in two warehouses, one in Brooklyn and one in Baldwin. From experience in past years, the owners know the big mover during the sale is tablets. The Manhattan store needs 500, while the Amityville store will require 400. Each warehouse has 600 tablets in stock. It costs $1 and $2 to ship a tablet from Brooklyn to Manhattan and to Amityville, and $2 and $4 to ship one from Baldwin to Manhattan and Amityville. What is the best shipping strategy for getting the tablets from the warehouses into the stores to minimize the shipping cost?

Answers

Answer:

Explanation:

From the given information:

Assuming we represent x to be the tablets sent from Brooklyn to Manhattan

Thus, (500 - x) to be the tablets sent from Baldwin to Manhattan

Also, suppose we represent y to be the tablets sent from Brooklyn to Amityville

It implies that (400 - x) to be the tablets sent from Baldwin to Amityville

∴

x ≥ 0 ; y ≥ 0

⇒ 500 - x ≥ 0 & 400 - y ≥ 0

The Shipping cost Z = 1(x) + 2(500-x) + 2(y) + 4(400-y)

Z = x + 1000 - 2x + 2y + 1600 - 4y

Z = x -2y + 2600

To minimize the shipping cost:

$\left \{ 500-x \geq 0 \ \implies \ x\leq 500}} \atop {400-y \geq 0 \ \implies \ y\leq 400}} \right.$

Thus, by replacing the coordinate values (x,y) into Z, we have:

Point Coordinates(x,y) Value of Z (shipping cost)

0 (0,0) 0

A (0,400) 1800

B (500,400) 1300

C (500,0) 2100

Hence, the minimum cost is 1300.

x = 500 units and y = 400 units

Roland industries purchased $2,200 worth of inventory on account on august 6th. the terms were 2/15, n/eom. roland industries also paid freight charges of $110 on august 7th. roland industries was granted a $190 purchase allowance for slightly damaged goods. prepare the journal entry on august 15th when roland industries pays the invoice in full.

Answers

Journal entry on August 15th for Roland industries for payment of the invoice in full:

It is given that Roland industries purchased $2,200 worth of inventory on account on august 6th. Roland industries were granted a $190 purchase allowance for slightly damaged goods. It means the net amount of invoice is (2200-190) = $2,010. We are also given that the terms were 2/15, n/eom. Now the company paid the invoice on 15th August, it means it shall get the discount of 2% and the net amount to be paid shall be = 2010- (2010*2%) = $1,969.80

The Journal entry on August 15th for Roland industries for payment of the invoice in full shall be as follows:

Account Payable Debit $2,200

Inventory Credit $190

Purchase Discount Credit $40.2

Cash Credit $1,969.80

(Being payment made in full and discount received)

In leading the push for proficient strategy execution and operating excellence, top-level managers need to take the lead on all of the following EXCEPT:_________a. being out in the field and seeing how well operations are going.
b. delegating authority to middle and lower-level managers and creating a sense of empowerment among employees to move the implementation process forward.
c. gathering information firsthand and gauging the progress beingmade.
d. learning the obstacles in the path of good execution and clearing the way for progress.
e. holding periodic ceremonies to honor people who excel in displaying the company values and ethical principles.

Answers

Answer:

E: Holding periodic ceremonies to honor people who excel in displaying the company values and ethical principles.

Explanation:

A, B, C and D all show the top-level excellence that a manager needs to take a lead on. E, however, does not. Although it'll be fun and joyful if the manager makes a ceremony to those who work efficiently, it's not a must. Hope this helps!

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Which of the following statements are inconsistent with the efficient market hypothesis?a. The average annual return on stocks is greater than zero. b. Stocks that outperform the index in March always underperform it in April. c. Half of fund managers are able to beat their relevant index each year, before fees. d. Stocks that outperform the index in March always outperform it in April.

The widespread acceptance that bacteria causes diseases helped lead to a public health movement in the late nineteenth and early twentieth centuries. This movement eventually brought sewers, clean drinking water, and garbage removal to all U.S. cities. The public health movement in the United States in the late nineteenth and early twentieth centuries was like a technological advance to the country's production possibilities, since both ____________ expanded secured the economy's productive capacity, the former by increasing the nation's ________ degree of sophistication effective workforce .

Using the expectations hypothesis theory for the term structure of interest rates, determine the expected return for securities with maturities of two, three, and four years based on the following data. (Input your answers as a percent rounded to 2 decimal places.) Interest Rate 1-year T-bill at beginning of year 1 4 % 1-year T-bill at beginning of year 2 5 % 1-year T-bill at beginning of year 3 9 % 1-year T-bill at beginning of year 4 11 %

The Roland Company needs to comply with the financial reporting standards of the Sarbanes-Oxley Act. One of the employees, Ken, believes that the costs outweigh the benefits. However, his boss feels the opposite, that the benefits outweigh the costs. Who is correct? A : Ken is correct, as the costs outweigh the benefits. B : Neither of them is correct, as determining the costs of the Act is possible, but determining the benefits is not fully possible. C : Neither of them is correct, as determining the benefits of the Act is possible, but determining the costs is not fully possible. D : Ken’s boss is correct, as the benefits outweigh the costs.