中国大学MOOC: A company determines its order quantity for a raw material by using the Economic Order Quantity (EOQ) model. What would be the effects on the EOQ and the total annual holding cost of a decrease in the cost of ordering a batch of raw material?
举一反三
- (EOQ) model. What would be the effects on the EOQ and the total annual ordering cost of an increase in the annual cost of holding one unit of the component in stock? A: EOQTotal annual ordering cost LowerHigher B: HigherLower C: LowerNo effect D: HigherNo effect
- The total annual cost is the sum of annual material cost, annual order cost, and annual holding cost, and is given as TC = CD + (D/Q)S + (Q/2)hC.
- In a financial accounting system what would be the double entry for the purchase of raw materials? A: Dr Raw material inventory, Cr Payables control account B: Dr Raw material inventory, Cr Cost control account C: Dr Payables control account, Cr Dr Raw material inventory D: Dr Cost control account, Cr Dr Raw material inventory
- In a financial accounting system what would be the double entry for the issue of direct materials to production? A: Dr Raw material inventory, Cr Work in progress B: Dr Raw material inventory, Cr Cost control account C: Dr Work in progress, Cr Raw material inventory D: Dr Cost control account, Cr Raw material inventory
- The following data relates to component L512: Ordering costs $100 per order Inventory holding costs $8 per unit per year Annual demand 1,225 units What is the economic order quantity (to the nearest whole unit)?