1. The EOQ model is a deterministic model that calculates the ideal order quantity (or production lot for ELS) given specific period demand, the cost per order or production run, and the periodic carrying cost per unit. The EOQ model

1. Minimizes the sum of inventory carrying costs and ordering costs
2. Minimizes the sum of ordering costs only
3. Minimizes the sum of carrying costs and handling costs
4. Minimizes the level of average inventory in units 2. Statement 1: In ABC, each activity cost pool identified must identify its own cost driver in order to compute for the activitys overhead rate.

Statement 2: ABC system will always yield a higher cost assignment of overhead as compared to traditional costing

1. Both statements are true
2. Both statements are false
3. Only statement 1 is true
4. Only statement 2 is true 3. Statement 1: The total amount backflushed from cost of goods sold to a specific inventory account is also the ending inventory balance of such account

Statement 2: Just in Time system and Backflush accounting go hand in hand in business management and accounting process.

1. Both statements are incorrect
2. Both statements are correct
3. Only statement 1 is true
4. Only statement 1 is false 4.Statement 1: Activity-based costing is a costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each products

Statement 2: ABC system can Identify and eliminate products and services that are unprofitable and lower the prices of those that are overpriced

1. Both statements are true
2. Both statements are false
3. Only statement 1 is true
4. Only statement 2 is true