Question 1

An assumption of the economic-order-quantity (EOQ)decision model is that:
Variant question

Accepted Answer

A) no stockouts occur. 
B) the quantity ordered can vary at each reorder point. 
C) demand ordering costs and carrying costs fluctuate. 
D) there will be timely labour costs. 
A) no stockouts occur. 
B) the quantity ordered can vary at each reorder point. 
C) demand ordering costs and carrying costs fluctuate. 
D) there will be timely labour costs.

Question 2

In managing inventory,the costs that result when a company runs out of a particular item for which there is a customer demand are known as:

Accepted Answer

A) shortage costs. 
B) stockout costs. 
C) EOQ estimation costs. 
D) shrinkage costs. 
A) shortage costs. 
B) stockout costs. 
C) EOQ estimation costs. 
D) shrinkage costs.

Question 3

What is a grouping of all the different types of equipment used to make a given product referred to as?
Variant question

Accepted Answer

A) Total quality management 
B) Economic order quantity 
C) Manufacturing cells 
D) Material requirements planning 
A) Total quality management 
B) Economic order quantity 
C) Manufacturing cells 
D) Material requirements planning

Question 4

A conflict between the EOQ model's optimal order quantity and the order quantity the purchasing manager,evaluated on conventional accounting numbers,regarded as optimal is considered a(n):

Accepted Answer

A) problem for the performance evaluation system to resolve. 
B) goal congruence. 
C) problem for the chief financial officer to resolve. 
D) opportunity cost. 
A) problem for the performance evaluation system to resolve. 
B) goal congruence. 
C) problem for the chief financial officer to resolve. 
D) opportunity cost.

Question 5

Healesville Toys sells stuffed koalas.Products Inc.manufactures many different stuffed animals.Healesville Toys orders 15 600 koalas per year,300 per week,at $25 per koala.The manufacturer covers all shipping costs.Healesville Toys earns 12% on its cash investments.The purchase-order lead time is 3 weeks.Healesville Toys sells 210 koalas per week.The following data are available (based on management's estimates):
Estimated ordering costs per purchase order $\quad \$ 10$
 Estimated insurance, materials handling, breakage,
 and so on, per year $\$ 3$
 Actual ordering costs per order $\$ 15$
What is the economic order quantity (EOQ)using the estimated amounts?

Accepted Answer

A) 325 stuffed koalas 
B) 361 stuffed koalas 
C) 119 stuffed koalas 
D) 273 stuffed koalas 
A) 325 stuffed koalas 
B) 361 stuffed koalas 
C) 119 stuffed koalas 
D) 273 stuffed koalas

Question 6

Bendigo Deli sells 25 hams per week.Purchase-order lead time is 2 weeks and the economic-order quantity is 75 hams.What is the reorder point?

Accepted Answer

A) 75 hams 
B) 30 hams 
C) 50 hams 
D) 25 hams 
A) 75 hams 
B) 30 hams 
C) 50 hams 
D) 25 hams

An assumption of the economic-order-quantity (EOQ)decision model is that: Variant question

In managing inventory,the costs that result when a company runs out of a particular item for which there is a customer demand are known as:

What is a grouping of all the different types of equipment used to make a given product referred to as? Variant question

A conflict between the EOQ model's optimal order quantity and the order quantity the purchasing manager,evaluated on conventional accounting numbers,regarded as optimal is considered a(n):

Bendigo Deli sells 25 hams per week.Purchase-order lead time is 2 weeks and the economic-order quantity is 75 hams.What is the reorder point?

Management Accounting in Context

Different Costs for Different Purposes

Determining How Costs Behave

Costvolumeprofit Analysis

Estimating the Cost of Producing Services

Estimating the Costs of Products and Inventory

Target Costing, Managing Activities and Managing Capacity

Activity-Based Management and Activity-Based Costing

Pricing and Customer Profitability

Decision Making and Relevant Information

Budgeting, Management Control and Responsibility Accounting

Flexible Budgets, Direct Cost Variances and Management Control

Flexible Budgets, Overhead Cost Variances and Management Control

Allocation of Support-Department Costs, Common Costs and Revenues

Strategy Formation, Strategic Control and the Balanced Scorecard

Quality, Time and the Balanced Scorecard

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing and Multinational Considerations

Performance Measurement, Compensation and Multinational Considerations

Measuring and Reporting Sustainability

Filters

Exam 17: Inventory Management, Just-In-Time and Simplified Costing Methods

An assumption of the economic-order-quantity (EOQ)decision model is that: Variant question

In managing inventory,the costs that result when a company runs out of a particular item for which there is a customer demand are known as:

What is a grouping of all the different types of equipment used to make a given product referred to as? Variant question

A conflict between the EOQ model's optimal order quantity and the order quantity the purchasing manager,evaluated on conventional accounting numbers,regarded as optimal is considered a(n):

Bendigo Deli sells 25 hams per week.Purchase-order lead time is 2 weeks and the economic-order quantity is 75 hams.What is the reorder point?

Management Accounting in Context

Different Costs for Different Purposes

Determining How Costs Behave

Costvolumeprofit Analysis

Estimating the Cost of Producing Services

Estimating the Costs of Products and Inventory

Target Costing, Managing Activities and Managing Capacity

Activity-Based Management and Activity-Based Costing

Pricing and Customer Profitability

Decision Making and Relevant Information

Budgeting, Management Control and Responsibility Accounting

Flexible Budgets, Direct Cost Variances and Management Control

Flexible Budgets, Overhead Cost Variances and Management Control

Allocation of Support-Department Costs, Common Costs and Revenues

Strategy Formation, Strategic Control and the Balanced Scorecard

Quality, Time and the Balanced Scorecard

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing and Multinational Considerations

Performance Measurement, Compensation and Multinational Considerations

Measuring and Reporting Sustainability

Filters