N Ltd?s chief executive believes the company is holding excessive stocks and has asked for the management

Question:

N Ltd?s chief executive believes the company is holding excessive stocks and has asked for the management accountant to carry out an investigation.Information on the two stock items is given below:

The company?s stock ordering policy is based on the economic order quantity (EOQ).

Required:(a) Determine the number of orders per year that the company will place for item G.(b) Determine the annual holding cost of the stock of item H.

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Economic Order Quantity
Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs. This production-scheduling model was developed in 1913 by Ford W. Harris and has...

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