An increase in which of the following should cause management to reduce average inventory? a. The cost

Question:

An increase in which of the following should cause management to reduce average inventory?
a. The cost of placing an order
b. The cost of carrying inventory
c. The annual demand for the product
d. The lead time needed to acquire inventory

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Cornerstones Of Cost Management

ISBN: 493

3rd Edition

Authors: Don R. Hansen, Maryanne M. Mowen

See More Books

Question Posted: Sep 01, 2015 04:50 AM

See More Questions

Sterling Corporation has an EOQ of 5,000 units. The company uses an average of 500 units per day. An order to replenish the part requires a lead time of five days. Required: 1. Calculate the reorder...
Desayuno Products, Inc., produces cornflakes and branflakes. The manufacturing process is highly mechanized; both products are produced by the same machinery by using different settings. For the...
Melchar Company uses 78,125 pounds of oats each year. The cost of placing an order is $18, and the carrying cost for one pound of oats is $0.45. Required: 1. Compute the economic order quantity for...
How to respond to the following? Cycle stock, pipeline inventory, buffer stock, and in-transit inventory all have associated carrying costs. Interest rates on inventory values, warehousing expenses,...
How might the short-term and long-term recruiting strategies differ?
Describe the reasons why a company acquires a subsidiary rather than its net assets. LO7
P 15-8 Interim reportingtax Tor Corporation is subject to income tax rates of 20 percent on its first $50,000 pretax income and 34 percent on amounts in excess of $50,000. Quarterly pretax accounting...
Trowbridge Manufacturing produces cases for personal computers and other electronic equipment. The quality control inspector for this company believes that a particular process is out of control....
If independent agents receive a 5% commission on sales, company salespeople would receive 3% commission, plus salaries, and benefits, sales administration costs with company salespeople of $60,000...
3. Write a memo Shelby Cobb and Alexis Hinojosa, the two supervisors to whom you report, have asked you to compose a draft memorandum for their joint signatures. Recently there has been a flurry of...
System Duckstein, Inc., manufactures two types of aspirin: plain and buffered. It sells all it produces. Recently, Duckstein implemented a TOC approach for its Fort Smith plant. One binding...
For the theory of constraints, which of the following determines the production rate of the plant? a. Local efficiency measures that encourage production of excess inventory just in case demand is...
An article published in Accounting Horizons describes various techniques that companies use to manage their earnings. Required: In your library, on the Internet, or from some other source, locate the...
1- What is the chairman of the Texas State Board of Education's primary occupation? 2- Why are the decisions the Texas State Board of Education make about their high school science standards so...
SECTION 7 KEEPING ENTIRE STRUCTURES IN EQUILIBRIUM ASSIGNMENT #2 1. Find the reactions at A and C. A 2. Find the reactions at A and C. 60.0 kN B 3.00 9.00 4.00 6.00 5.00 kN 3.00 B 1.00 2.00 10.0 kN...
The year-end financial statements of Python Tax Services are provided below. Service revenue Expenses: Salaries Utilities Insurance Supplies Net income PYTHORT TAX SERVICES Income Statement $ 68,500...
a. Calculate the volume of the solid of revolution created by rotating the curve y=2+4 exp(-5 x) about the x-axis, for x between 2 and 4. Volume: b. The equation of a circle of radius r, centered at...
The simply supported timber beam of Figure 1 is made-up by gluing together three 300 mm by 150 mm planks as shown. The beam has to carry a uniformly distributed vertically downward load of 8 kN/m for...
Which of the following is not an acceptable filing status? a. Single b. Qualifying widow(er) c. Divorced d. Head of household
Bonus shares can be issued out of revenue reserves. True/False?
Elite Mobile Homes reported the following in its financial statements for the year ended December 31, 2007 (adapted, in millions): .Determine the following for Elite Mobile Homes during 2007: a....
Consider the following actions of a college trying to manage the costs of its library. Required Match each of the process improvements listed with how they deliver cost reductions. Process...
Marvin's Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent to the cost of the supplies to cover the delivery cost. The delivery fee is meant to cover the cost...
Marvin's Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent to the cost of the supplies to cover the delivery cost. The delivery fee is meant to cover the cost...
Cash from Operating Activities: ______________ Cash from Investing Activities: ______________ Cash from Financing Activities: ______________ Problem 2: Financial Ratios The GAP Macys 1 Current Ratio...
On January 1, 2021, Winky Enterprises issued 12% bonds dated January 1, 2021, with a face amount of $2,800,000. The bonds mature in 2030 (10 years). For bonds of similar risk and maturity, the market...
Using the following accounts and balances, prepare the stockholders' equity vection of the balance sheet. Pilty thousand shares of common stock are authorised, and 1,000 shares have been recoured,...

An increase in which of the following should cause management to reduce average inventory? a. The cost

Question:

Step by Step Answer:

b An increase in the cost of carrying inventory would lead to a ...View the full answer

Cornerstones Of Cost Management

Students also viewed these Managerial Accounting questions