TheCurachaCompany uses 20, 000 units of Material A in making finished product. The cost to place one order for Material A is P8. 00 and the annual cost to carry one Material AisP2.00

1. The economic order quantity for Material A is

a.100 units

b.400 units

c.283 units

d.565 units

1. 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

Statement 1: In ABC, each activity cost pool identified must identify its own cost driver in order to compute for the activity's 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