Inventory management procedures that use purchase prices, ordering costs, quantity de- manded, and carrying costs can be

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Inventory management procedures that use purchase prices, ordering costs, quantity de- manded, and carrying costs can be used to manage assets other than inventories. A pension fund trustee must keep a certain amount of cash on hand to pay pensions, and this money is unproductive because it is not invested. A mail-order house uses postage meters that must be taken to the post office periodically for refilling. Describe the variables you would use to determine the economic quantity of money that should be available to the trustee. What variables would you use to describe the economic quantity of postage to put into the meters at any one time?

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Cost Accounting

ISBN: 9780538817646

2nd Edition

Authors: Les Heitger, Pekin Ogan, Serge Matulich

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