A "decentralized" management structure is best suited for a ...

Question 12 options:

	profit/investment center
	none of the answers are necessarily correct
	revenue center
	cost center

Question 13 (1 point)

True or false..............Both the United States and Canada have strict laws that prevent corporations from paying their senior executives bonuses during periods of poor corporate performance.

Question 13 options:

	True
	False

Question 14 (3 points)

The following are annual results for Company G:

for 2021: # of hats made: 8000 square meters of cloth used: 12000 cloth cost: $270000

for 2022 # of hats made: 6000 square meters of cloth used: 10400 cloth cost: $27900

Compared to 2021, the cloth usage in 2022 had an "efficiency" variance of

Question 14 options:

	$900 U
	$31500U
	$3150 U
	none of the listed answers are correct

Question 15 (1 point)

True or false............... "Abnormal spoilage" costs are recognized on the income statement when the products in question are manufactured

Question 15 options:

	True
	False

Question 16 (1 point)

Fill in the Blank.............."The number of warranty claims to your "Customer Complaint Hotline" is used as a basis for assigning Customer Service department costs to product lines." This is an example of the _____________________ cost-allocation criteria

Question 16 options:

	cause and effect
	fairness or equity
	benefits received
	ability to bear

Question 17 (1 point)

The overall goal of "joint cost" allocation is to ................

Question 17 options:

	always allocate joint costs based either on a "physical measure" method or "sales value at splitoff" method
	always allocate joint costs based on a mathematical formula
	provide managers with the necessary information to perform their their duties/responsibilities and those of their company
	always allocate prices based on a mathematical formula

Question 18 (1 point)

True or False: "Normal spoilage" costs result from machine and/or production system failures that given current technology are unpreventable.

Question 18 options:

	True
	False

Question 19 (1 point)

An advantage of a "decentralized" management structure is....

Question 19 options:

	individual subunit managers are increasingly motivated to follow the company's accounting procedures
	all the listed answers are correct
	individual subunit managers are increasingly motivated to satisfy overall company goals & strategies
	individual subunit managers place emphasis on satisfying their customer base

Question 20 (1 point)

True or false ....... Life-cycle pricing strategies recognize "unit costs" and/or "selling prices" can change in either direction, over the life cycle of a product.

Question 20 options:

	True
	False

Question 21 (1 point)

True or false............. "Separable costs", by definition, in a "joint process" occur before the "splitoff point"

Question 21 options:

	True
	False

Question 22 (2 points)

For the month of July, the manufacturing Company "X" experienced the following:

• had zero units in beginning inventory of any kind
• started 1500 units of which......
• good units completed and shipped out.... 800
• units of WIP at the end of the month..... 207
• also...... $90000 was spent on materials during the month (all incurred at the beginning of the manufacturing process)
• "Normal spoilage" as a % of the good units completed & shipped out good units: 40.5
• Inspections occur at the end of the manufacturing process

For the month of July "spoilage" related material costs for the company totaled

Question 22 options:

	$26,508
	$40800
	$49200
	$60420
	$29580

Question 23 (2 points)

For the month of July, the manufacturing Company "X" experienced the following:

• had zero units in beginning inventory of any kind
• started 1500 units of which......
• good units completed and shipped out.... 800
• units of WIP at the end of the month..... 207
• also...... $90000 was spent on materials during the month (all incurred at the beginning of the manufacturing process)
• "Normal spoilage" as a % of the good units completed & shipped out good units: 40.5
• Inspections occur at the end of the manufacturing process

For the month of July,unanticipated spoilage problems cost the company in materials

Question 23 options:

	$21600
	$15250
	$33,000
	$10140
	$14180

Question 24 (1 point)

Compensation packages for senior management generally include

Question 24 options:

	base salary & stock options
	base salary, annual incentives/bonuses, long term incentives, fringe benefits,
	annual incentives/bonuses & a base salary
	base salary & fringe benefits

Question 25 (1 point)

By mistake, you've underestimated the % completion for energy in your WIP. As a result, your calculated unit costs for energy using this incorrect information will be

Question 25 options:

	underestimated
	not affected
	overestimated
	correct

Question 26 (3 points)

The following information relates to a joint manufacturing process...

Product "S" results:

final sale price: $80000 "separable costs" after splitoff point: $45000

Product "T" results:

final sale price: $13000 "separable costs" after splitoff point: $8500

Using the NRV method how much of the $25000 joint costs in the above "joint process" should be allocated to "S" & "T"

Question 26 options:

	Product S: $2848 Product T: $22152
	Product S: $12500 Product T: $12500
	Product S: $22152 Product T: $2848
	Product S: $10938 Product T: $14062

Question 27 (1 point)

The basic EOQ model is simplistic in that it ignores...

Question 27 options:

	changes in "purchase order lead times"
	all of the listed answers are correct
	incremental "ordering costs" can be uncertain
	"discounts" related to order size

Question 28 (1 point)

A reason for maintaining sales with an "unprofitable" customer is ..............

Question 28 options:

	there is reason to believe the relationship with the customer will become profitable in the future
	the customer provides valuable information to your company
	the relationship attracts other profitable customers
	all the listed answers are correct

Question 29 (3 points)

Company Y uses a "Cost-Plus Pricing " strategy to set its product prices. Given the following information, in order to meet it's profitability objectives, the price for "Product S" next year should be set at what ?

• desired ROI % : 15
• capital invested in "Product S" : $150000
• annual projected unit sales: 25000
• "Product S" full unit cost: $18.99

Question 29 options:

	$18.90 per unit
	$20.70 per unit
	$19.89 per unit
	$22.50 per unit
	none of the listed answers are correctg

Question 30 (2 points)

For the month of July, the manufacturing Company "X" experienced the following:

• had zero units in beginning inventory of any kind
• started 1500 units of which......
• good units completed and shipped out.... 800
• units of WIP at the end of the month..... 207
• also...... $90000 was spent on materials during the month (all incurred at the beginning of the manufacturing process)
• "Normal spoilage" as a % of the good units completed & shipped out good units: 40.5
• Inspections occur at the end of the manufacturing process

For the month of July "abnormal spoilage" was

Question 30 options:

	360 units
	324
	210 units
	183 units
	169 units

Question 31 (1 point)

"Tax authorities" prefer the following method in setting Transfer Prices due to its simplicity/verifiability.

Question 31 options:

	Institutional
	Negotiated
	Market-based
	Cost-based

Question 32 (1 point)

The goal of "Supply-Chain Inventory Cost Management" strategy is to .....

Question 32 options:

	ultimately reduce inventory "carrying costs" throughout the entire supply chain
	ultimately reduce inventory related costs by retailers
	ultimately reduce inventory related costs throughout the entire supply chain
	ultimately reduce inventory "ordering costs" throughout the entire supply chain

Question 33 (1 point)

For companies operating plants in different tax jurisdictions where Transfer Prices are in play, your instructor argued.........

Question 33 options:

	Transfer Pricing decisions are best made by operating plant managers as they have the "inhouse expertise" to make the best decision on behalf of the entire company
	Transfer Pricing decisions are best made by head office personnel as they have the "accounting/financial analysis/tax" expertise and are unbiased when it comes to making the best decision on behalf of the entire company
	Transfer Pricing decisions are best made by the operating plant managers/accountants as they have the "local market expertise" to make the best decision on behalf of the entire company

Question 34 (1 point)

Multi-National Company "Q" operates several divisions in multiple countries around the world. Each division transfers intermediate products with the other divisions. Ideally "Q" would like to set Transfer Prices so divisions with the highest operating profits are located

Question 34 options:

	in the jurisdictions with the highest tax rates
	in the jurisdictions with the lowest tax rates
	in the jurisdictions with simplified tax laws

Question 35 (3 points)

Your Company has 2 support departments "C" & "D", and 2 operating departments "S" &"R". Data for the month of September is as follows:

Total Dept. Costs before allocations: "C" $3900 "D" $30000 "S" $6000 "R" $4000

Total "C" dept. hours: 50 .... usage broken down as follows: 1 by "D", 25 by "S" & 24 by "R"

Total "D" dept. hours: 100 .... usage broken down as follows: 50 by "C",

25 by "S" & 25 by "R"

Under the "Step Down" method, how much of Dept "D"'s costs will be allocated to Dept "C" initially?

Question 35 options:

	$2000
	$3000
	none of the listed answers are correct
	$1500
	$1800

Question 36 (1 point)

"Just in Time Purchasing/Procurement" .....

Question 36 options:

	is a strategy with the primary objective of reducing only WIP inventory costs
	is a strategy with the primary objective of reducing only finished goods inventory costs
	is a demand pull strategy that delivers parts/goods to the production/sales floor just in time as they are needed
	is a demand push strategy that delivers parts/good to the production/sales floor just as they are needed

Question 37 (1 point)

A "decentralized" management structure ....

Question 37 options:

	reduces duplication of services throughout the organization
	leads to individual managers following the organization's accounting procedures
	leads to individual managers being mindful of the organization's overall goals/strategy
	can result in quicker decision making

Question 38 (2 points)

For the month of July, the manufacturing Company "X" experienced the following:

• had zero units in beginning inventory of any kind
• started 1500 units of which......
• good units completed and shipped out.... 800
• units of WIP at the end of the month..... 20
• also...... $90000 was spent on materials during the month (all incurred at the beginning of the manufacturing process)
• "Normal spoilage" as a % of the good units completed & shipped out good units: 40.5
• Inspections occur at the end of the manufacturing process

For the month of July "normal spoilage" was

Question 38 options:

	210 units
	320 units
	324 units
	290 units
	40 units

Question 39 (1 point)

True or false..................... Generally the higher the level of management, the greater the emphasis on long-term performance measures used to formulate their compensation package.

Question 39 options:

	True
	False

Question 40 (3 points)

The following are annual results for Company K:

for 2021: # of units sold: 5000 total revenue $20000

for 2022: # of units sold: 6000 total revenue: $3000

Compared to 2021, in 2022 there was a "sales quantity variance" of

Question 40 options:

	$500 F
	$100 F
	$400 F
	$1000 F
	$4000 F

Question 41 (1 point)

A clothing manufacturing company takes left over bits and pieces of cloth and gives them away for free to a non-profit organization who in turn makes them into dish washing clothes which are distributed to homeless shelters.

The value of this cloth to the clothing manufacturing company is termed ....

Question 41 options:

	rework costs
	joint costs
	scrap costs
	spoilage costs

Question 42 (1 point)

True or false.............."Transfer Pricing" decisions can have significant impact on a company's bottom line when the company's divisions operate in the same tax jurisdiction.

Question 42 options:

	True
	False

Question 43 (1 point)

True or false........Multinational companies, by their very nature, operate their divisions in different countries using a "centralized" management structure for the organization as a whole

Question 43 options:

	True
	False

Question 44 (1 point)

True or false: Individual management compensation packages should be either based on "financial" or "non-financial" performance measures, but not both

Question 44 options:

	True
	False

Question 45 (1 point)

Ideally compensation packages for management..........

Question 45 options:

	all of the listed answers are correct
	should be based on both financial and non-financial metrics where applicable
	should be based on metrics the manager is in control of
	should be benchmarked with your competition

Question 46 (1 point)

True or false: Even within the same company, it often doesn't make sense to have identical compensation packages for the divisional mangers.

Question 46 options:

	True
	False

Question 47 (1 point)

Fill in the Blank.............."The operating income of each product line is used as a basis for assigning R&D department costs to product lines." This is an example of the ____________________ cost-allocation criteria

Question 47 options:

	benefits received
	fairness or equity
	cause and effect
	ability to bear

Question 48 (1 point)

Which of the following is correct when higher inventory levels are pursued

Question 48 options:

	transportation costs may go up; "opportunity costs of investment" may go down; "receiving costs" may go up; theft may go down; obsolescence costs may go up
	transportation costs may go down; "opportunity costs of investment" may go up; "receiving costs" may go down; theft may go up; obsolescence costs may go up
	transportation costs may go up; "opportunity costs of investment" may go down; "receiving costs" may go up; theft may go down; obsolescence costs may go down
	transportation costs may go down; "opportunity costs of investment" may go down; "receiving costs" may go up; theft may go down; obsolescence costs may go up

Question 49 (3 points)

Company "X" is a retailer who sells shoes. Given the following data & using the "EOQ model" , calculate the reorder point

• monthly pairs of shoes sold: 3000
• purchase order lead time in days: 8.9
• days open per year: 365
• relevant Purchase Order cost per order: $189
• relevant annual carrying costs per pair of shoes: $15
• stockout costs per stockout: $48
• pairs of shoes required for safety stock: 250

Question 49 options:

	1039
	1128
	1252
	998
	1251

Question 50 (1 point)

All successful "price setting strategies" must take into account the "3 C's" which are

Question 50 options:

	Costs, Competitors & Customers
	none of the listed answers are correct
	Capital, Competitors & Capacity
	Costs, Capacity & Customers

Question 51 (1 point)

True or false............. The presence of "Safety Stock" increases "Carrying Costs" associated with inventory

Question 51 options:

	True
	False

Question 52 (1 point)

When Company "R" develops new products, it first examines the marketplace for customers' potential product needs/price levels. Company "R" then undertakes designing a new product that meets those needs at a cost that will deliver an acceptable profit line.

The above is an example of the following pricing strategy....

Question 52 options:

	Value chain pricing
	Life-cycle pricing
	Target pricing
	Cost-plus pricing

A "decentralized" management structure is best suited for a ...

Question 12 options:

	profit/investment center
	none of the answers are necessarily correct
	revenue center
	cost center

Question 13 (1 point)

True or false..............Both the United States and Canada have strict laws that prevent corporations from paying their senior executives bonuses during periods of poor corporate performance.

Question 13 options:

	True
	False

Question 14 (3 points)

The following are annual results for Company G:

for 2021: # of hats made: 8000 square meters of cloth used: 12000 cloth cost: $270000

for 2022 # of hats made: 6000 square meters of cloth used: 10400 cloth cost: $27900

Compared to 2021, the cloth usage in 2022 had an "efficiency" variance of

Question 14 options:

	$900 U
	$31500U
	$3150 U
	none of the listed answers are correct

Question 15 (1 point)

True or false............... "Abnormal spoilage" costs are recognized on the income statement when the products in question are manufactured

Question 15 options:

	True
	False

Question 16 (1 point)

Fill in the Blank.............."The number of warranty claims to your "Customer Complaint Hotline" is used as a basis for assigning Customer Service department costs to product lines." This is an example of the _____________________ cost-allocation criteria

Question 16 options:

	cause and effect
	fairness or equity
	benefits received
	ability to bear

Question 17 (1 point)

The overall goal of "joint cost" allocation is to ................

Question 17 options:

	always allocate joint costs based either on a "physical measure" method or "sales value at splitoff" method
	always allocate joint costs based on a mathematical formula
	provide managers with the necessary information to perform their their duties/responsibilities and those of their company
	always allocate prices based on a mathematical formula

Question 18 (1 point)

True or False: "Normal spoilage" costs result from machine and/or production system failures that given current technology are unpreventable.

Question 18 options:

	True
	False

Question 19 (1 point)

An advantage of a "decentralized" management structure is....

Question 19 options:

	individual subunit managers are increasingly motivated to follow the company's accounting procedures
	all the listed answers are correct
	individual subunit managers are increasingly motivated to satisfy overall company goals & strategies
	individual subunit managers place emphasis on satisfying their customer base

Question 20 (1 point)

True or false ....... Life-cycle pricing strategies recognize "unit costs" and/or "selling prices" can change in either direction, over the life cycle of a product.

Question 20 options:

	True
	False

Question 21 (1 point)

True or false............. "Separable costs", by definition, in a "joint process" occur before the "splitoff point"

Question 21 options:

	True
	False

Question 22 (2 points)

For the month of July, the manufacturing Company "X" experienced the following:

• had zero units in beginning inventory of any kind
• started 1500 units of which......
• good units completed and shipped out.... 800
• units of WIP at the end of the month..... 207
• also...... $90000 was spent on materials during the month (all incurred at the beginning of the manufacturing process)
• "Normal spoilage" as a % of the good units completed & shipped out good units: 40.5
• Inspections occur at the end of the manufacturing process

For the month of July "spoilage" related material costs for the company totaled

Question 22 options:

	$26,508
	$40800
	$49200
	$60420
	$29580

Question 23 (2 points)

For the month of July, the manufacturing Company "X" experienced the following:

• had zero units in beginning inventory of any kind
• started 1500 units of which......
• good units completed and shipped out.... 800
• units of WIP at the end of the month..... 207
• also...... $90000 was spent on materials during the month (all incurred at the beginning of the manufacturing process)
• "Normal spoilage" as a % of the good units completed & shipped out good units: 40.5
• Inspections occur at the end of the manufacturing process

For the month of July,unanticipated spoilage problems cost the company in materials

Question 23 options:

	$21600
	$15250
	$33,000
	$10140
	$14180

Question 24 (1 point)

Compensation packages for senior management generally include

Question 24 options:

	base salary & stock options
	base salary, annual incentives/bonuses, long term incentives, fringe benefits,
	annual incentives/bonuses & a base salary
	base salary & fringe benefits

Question 25 (1 point)

By mistake, you've underestimated the % completion for energy in your WIP. As a result, your calculated unit costs for energy using this incorrect information will be

Question 25 options:

	underestimated
	not affected
	overestimated
	correct

Question 26 (3 points)

The following information relates to a joint manufacturing process...

Product "S" results:

final sale price: $80000 "separable costs" after splitoff point: $45000

Product "T" results:

final sale price: $13000 "separable costs" after splitoff point: $8500

Using the NRV method how much of the $25000 joint costs in the above "joint process" should be allocated to "S" & "T"

Question 26 options:

	Product S: $2848 Product T: $22152
	Product S: $12500 Product T: $12500
	Product S: $22152 Product T: $2848
	Product S: $10938 Product T: $14062

Question 27 (1 point)

The basic EOQ model is simplistic in that it ignores...

Question 27 options:

	changes in "purchase order lead times"
	all of the listed answers are correct
	incremental "ordering costs" can be uncertain
	"discounts" related to order size

Question 28 (1 point)

A reason for maintaining sales with an "unprofitable" customer is ..............

Question 28 options:

	there is reason to believe the relationship with the customer will become profitable in the future
	the customer provides valuable information to your company
	the relationship attracts other profitable customers
	all the listed answers are correct

Question 29 (3 points)

Company Y uses a "Cost-Plus Pricing " strategy to set its product prices. Given the following information, in order to meet it's profitability objectives, the price for "Product S" next year should be set at what ?

• desired ROI % : 15
• capital invested in "Product S" : $150000
• annual projected unit sales: 25000
• "Product S" full unit cost: $18.99

Question 29 options:

	$18.90 per unit
	$20.70 per unit
	$19.89 per unit
	$22.50 per unit
	none of the listed answers are correctg

Question 30 (2 points)

For the month of July, the manufacturing Company "X" experienced the following:

• had zero units in beginning inventory of any kind
• started 1500 units of which......
• good units completed and shipped out.... 800
• units of WIP at the end of the month..... 207
• also...... $90000 was spent on materials during the month (all incurred at the beginning of the manufacturing process)
• "Normal spoilage" as a % of the good units completed & shipped out good units: 40.5
• Inspections occur at the end of the manufacturing process

For the month of July "abnormal spoilage" was

Question 30 options:

	360 units
	324
	210 units
	183 units
	169 units

Question 31 (1 point)

"Tax authorities" prefer the following method in setting Transfer Prices due to its simplicity/verifiability.

Question 31 options:

	Institutional
	Negotiated
	Market-based
	Cost-based

Question 32 (1 point)

The goal of "Supply-Chain Inventory Cost Management" strategy is to .....

Question 32 options:

	ultimately reduce inventory "carrying costs" throughout the entire supply chain
	ultimately reduce inventory related costs by retailers
	ultimately reduce inventory related costs throughout the entire supply chain
	ultimately reduce inventory "ordering costs" throughout the entire supply chain

Question 33 (1 point)

For companies operating plants in different tax jurisdictions where Transfer Prices are in play, your instructor argued.........

Question 33 options:

	Transfer Pricing decisions are best made by operating plant managers as they have the "inhouse expertise" to make the best decision on behalf of the entire company
	Transfer Pricing decisions are best made by head office personnel as they have the "accounting/financial analysis/tax" expertise and are unbiased when it comes to making the best decision on behalf of the entire company
	Transfer Pricing decisions are best made by the operating plant managers/accountants as they have the "local market expertise" to make the best decision on behalf of the entire company

Question 34 (1 point)

Multi-National Company "Q" operates several divisions in multiple countries around the world. Each division transfers intermediate products with the other divisions. Ideally "Q" would like to set Transfer Prices so divisions with the highest operating profits are located

Question 34 options:

	in the jurisdictions with the highest tax rates
	in the jurisdictions with the lowest tax rates
	in the jurisdictions with simplified tax laws

Question 35 (3 points)

Your Company has 2 support departments "C" & "D", and 2 operating departments "S" &"R". Data for the month of September is as follows:

Total Dept. Costs before allocations: "C" $3900 "D" $30000 "S" $6000 "R" $4000

Total "C" dept. hours: 50 .... usage broken down as follows: 1 by "D", 25 by "S" & 24 by "R"

Total "D" dept. hours: 100 .... usage broken down as follows: 50 by "C",

25 by "S" & 25 by "R"

Under the "Step Down" method, how much of Dept "D"'s costs will be allocated to Dept "C" initially?

Question 35 options:

	$2000
	$3000
	none of the listed answers are correct
	$1500
	$1800

Question 36 (1 point)

"Just in Time Purchasing/Procurement" .....

Question 36 options:

	is a strategy with the primary objective of reducing only WIP inventory costs
	is a strategy with the primary objective of reducing only finished goods inventory costs
	is a demand pull strategy that delivers parts/goods to the production/sales floor just in time as they are needed
	is a demand push strategy that delivers parts/good to the production/sales floor just as they are needed

Question 37 (1 point)

A "decentralized" management structure ....

Question 37 options:

	reduces duplication of services throughout the organization
	leads to individual managers following the organization's accounting procedures
	leads to individual managers being mindful of the organization's overall goals/strategy
	can result in quicker decision making

Question 38 (2 points)

For the month of July, the manufacturing Company "X" experienced the following:

• had zero units in beginning inventory of any kind
• started 1500 units of which......
• good units completed and shipped out.... 800
• units of WIP at the end of the month..... 20
• also...... $90000 was spent on materials during the month (all incurred at the beginning of the manufacturing process)
• "Normal spoilage" as a % of the good units completed & shipped out good units: 40.5
• Inspections occur at the end of the manufacturing process

For the month of July "normal spoilage" was

Question 38 options:

	210 units
	320 units
	324 units
	290 units
	40 units

Question 39 (1 point)

True or false..................... Generally the higher the level of management, the greater the emphasis on long-term performance measures used to formulate their compensation package.

Question 39 options:

	True
	False

Question 40 (3 points)

The following are annual results for Company K:

for 2021: # of units sold: 5000 total revenue $20000

for 2022: # of units sold: 6000 total revenue: $3000

Compared to 2021, in 2022 there was a "sales quantity variance" of

Question 40 options:

	$500 F
	$100 F
	$400 F
	$1000 F
	$4000 F

Question 41 (1 point)

A clothing manufacturing company takes left over bits and pieces of cloth and gives them away for free to a non-profit organization who in turn makes them into dish washing clothes which are distributed to homeless shelters.

The value of this cloth to the clothing manufacturing company is termed ....

Question 41 options:

	rework costs
	joint costs
	scrap costs
	spoilage costs

Question 42 (1 point)

True or false.............."Transfer Pricing" decisions can have significant impact on a company's bottom line when the company's divisions operate in the same tax jurisdiction.

Question 42 options:

	True
	False

Question 43 (1 point)

True or false........Multinational companies, by their very nature, operate their divisions in different countries using a "centralized" management structure for the organization as a whole

Question 43 options:

	True
	False

Question 44 (1 point)

True or false: Individual management compensation packages should be either based on "financial" or "non-financial" performance measures, but not both

Question 44 options:

	True
	False

Question 45 (1 point)

Ideally compensation packages for management..........

Question 45 options:

	all of the listed answers are correct
	should be based on both financial and non-financial metrics where applicable
	should be based on metrics the manager is in control of
	should be benchmarked with your competition

Question 46 (1 point)

True or false: Even within the same company, it often doesn't make sense to have identical compensation packages for the divisional mangers.

Question 46 options:

	True
	False

Question 47 (1 point)

Fill in the Blank.............."The operating income of each product line is used as a basis for assigning R&D department costs to product lines." This is an example of the ____________________ cost-allocation criteria

Question 47 options:

	benefits received
	fairness or equity
	cause and effect
	ability to bear

Question 48 (1 point)

Which of the following is correct when higher inventory levels are pursued

Question 48 options:

	transportation costs may go up; "opportunity costs of investment" may go down; "receiving costs" may go up; theft may go down; obsolescence costs may go up
	transportation costs may go down; "opportunity costs of investment" may go up; "receiving costs" may go down; theft may go up; obsolescence costs may go up
	transportation costs may go up; "opportunity costs of investment" may go down; "receiving costs" may go up; theft may go down; obsolescence costs may go down
	transportation costs may go down; "opportunity costs of investment" may go down; "receiving costs" may go up; theft may go down; obsolescence costs may go up

Question 49 (3 points)

Company "X" is a retailer who sells shoes. Given the following data & using the "EOQ model" , calculate the reorder point

• monthly pairs of shoes sold: 3000
• purchase order lead time in days: 8.9
• days open per year: 365
• relevant Purchase Order cost per order: $189
• relevant annual carrying costs per pair of shoes: $15
• stockout costs per stockout: $48
• pairs of shoes required for safety stock: 250

Question 49 options:

	1039
	1128
	1252
	998
	1251

Question 50 (1 point)

All successful "price setting strategies" must take into account the "3 C's" which are

Question 50 options:

	Costs, Competitors & Customers
	none of the listed answers are correct
	Capital, Competitors & Capacity
	Costs, Capacity & Customers

Question 51 (1 point)

True or false............. The presence of "Safety Stock" increases "Carrying Costs" associated with inventory

Question 51 options:

	True
	False

Question 52 (1 point)

When Company "R" develops new products, it first examines the marketplace for customers' potential product needs/price levels. Company "R" then undertakes designing a new product that meets those needs at a cost that will deliver an acceptable profit line.

The above is an example of the following pricing strategy....

Question 52 options:

	Value chain pricing
	Life-cycle pricing
	Target pricing
	Cost-plus pricing