What are the elements of the carrying cost of inventory and their relationship with inventory levels and capital investment? How does ABC inventory stratification impact the carrying cost equation?
1. The elements of the carrying cost of inventory include capital cost, inventory service cost, inventory risk cost, and storage space cost. 2. The Economic Order Quantity (EOQ) Model shows that there is an increase in the carrying cost of inventory when the inventory order exceeds the EOQ level, which results in an increased capital investment for the inventory that is kept in stock for a long period. Therefore, there is a linear relationship between the carrying cost of inventory and inventory levels and capital investment. When one element increases, the other two elements will also increase. 3. ABC Inventory stratification aids in reducing the carrying cost equation by dividing inventory into different classifications based on their annual demand, ensuring that inventory levels match. Inventory is defined as the unsold stock held by a company at the end of a trading period, and it is one of the current assets used in determining the current ratio.
Which of the following transactions require adjusting entries?
Adjusting entries are made to journal entries of transactions that are already recorded. Transactions (1), (3), (5), (6), and (8) require adjusting entries as follows: (1) Six months of rent were paid in advance, (3) A 24-month insurance policy was prepaid, (5) Supplies were purchased at the beginning of the year, but not all were used, (6) An advance payment was received from a customer earlier in the month, but only partially earned by the end of the month, and (8) Equipment was purchased in the middle of the year. An adjustment entry is required in the closing of an accounting cycle to reflect any unreported income or expenses during the time.
Suppose you are able to produce 50 basketballs. Hiring another employee enables you to produce 65 basketballs. The marginal product of the added worker is _____ basketballs.
15 basketballs
what is the typical outcome when employers or unions violate the nlra? group of answer choices all charges against the employer or union are dropped. the union is assigned punitive damages up to 80% of costs. the employer is ordered to shut down until a fair compromise is reached. the nlra takes on the role of criminal law and takes the union to court. the employer or union is ordered to stop unfair labor practices.
The employer or union is ordered to stop unfair labor practices.
When goods are sold on credit in one month but payment is received in another month, in which month should a company recognize the revenue and expenses? Please create journal entries for both the sale month and the payment month.
The revenue and expenses should be recognized in January, the sale month. The journal entry for January includes a credit to sales and a debit to accounts receivable. The journal entry for February includes a credit to accounts receivable and a debit to cash.
What pricing model is being used with shrinkflation?
Cost-oriented pricing model
In what ways has the European Union made trade simpler between its member nations compared to the United States and France?
The EU promotes free trade among its member nations and negotiates contracts and trade policies on their behalf, which often provides greater market access and expansion opportunities for businesses. The EU's collective voice also carries more weight in international trade discussions.
Which of the following is not part of Bagley's ethical decision-making model?
d. Is the proposed action in the best interest of stakeholders?
What is the term used to describe a set of documents that detail manufacturing and service delivery specification?
Process analysis
A determination of cost savings obtained by outsourcing cafeteria services is most likely to be an objective of: a. Environmental auditing. b. Financial auditing. c. Compliance auditing. d. Operational auditing.
d. Operational auditing.