State whether the following statements are true with reasons:

1.Safety stock increases as demand increases

2.To protect against stock outs, a large batch size is a must

3.Economic order quantity is based on a balancing between inventory carrying cost and shortage costs.

4.Lead time is the time interval elapsing between the placement of a replenishment order and the receipt of last installment of goods against the order.

Zebra Ltd presents the following information for a month:

Budgeted production of product P = 200 units.

Standard consumption of Raw materials = 2 kg. per unit of P.

Standard price of material A =6 per kg.

Actually, 250 units of P were produced and material A was purchased at8 per kg and consumed at 1.8 kg per unit of P.

Calculate all types Material Cost Variances.

Strong construction company earned $439,000 during the year ended June 30, 2017. After paying out $225,794 in dividends, the balance went into retained earnings.

If the firm's total earnings were $842,180 at the end of fiscal year 2017, what were the retained earnings on its balance sheet on July 1 ,2016?

Nick Inc. has a Days Inventory Outstanding of 13, an Accounts Receivable $128, an Average Sales per Day of $15, and a Days Payable Outstanding of 3. What is Nick's Cash Conversion Cycle in days?