Exam 18: Responsibility Accounting, Performance Evaluation and Transfer Pricing

Chelsea Company has determined the following costs are associated with one of its products. Lead time (weeks) 4 Average weekly usage (units) 50 Maximum weekly us age (units) 65 - The reorder point is

A company adopting JIT would

Norwich Company has determined the following costs are associated with one of its products. $E = E$ conomic order quantity (EOQ) $\mathrm { Q } =$ Annual quantity used in units $\quad$ $\quad$ $\quad$ $\quad$$\quad$ 4800 $P =$ Cost of placing one order (f) $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ 3 $\mathrm { C } = \mathrm { A }$ nnual cost of carrying one unit in stock (E) $\quad$ 8 - If the annual cost of carrying one unit in stock is increased to £10 and the cost of placing one order is reduced to £2 the economic order quantity (EOQ) is

Chelsea Company has determined the following costs are associated with one of its products. Lead time (weeks) 12 Average weekly usage (units) 120 Maximum weekly us age (units) 140 - The reorder point is

"The big question today is how to measure human capital and the soft skills." Discuss.

Stock ordering costs are incurred each time a stock is ordered

JIT emphasises the importance of reducing stock

Chelsea Company has determined the following costs are associated with one of its products. Lead time (weeks) 11 Average weekly usage (units) 100 Maximum weekly us age (units) 120 - The reorder point is

Outsourcing part of your business is something that will always lead to success.

Work in progress stock consist of units of product that are only partially complete and will require further work before they are ready for sale to a customer

Newcastle Company has determined the following costs are associated with one of its products. $E = E$ conomic order quantity (EOQ) $\mathrm { Q } =$ Annual quantity used in units $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ 3000 $P =$ Cost of placing one order ( $( £ )$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ 10 $C = A$ nnual cost of carrying one unit in stock (£) $\quad$ 0.8 - If the cost of placing an order is increased to £15 and the annual quantity used in units decreases to 2,000 units the economic order quantity (EOQ) is

Benefits of a JIT system include reduced throughput time

SSCs may sometimes be treated as profit centres

Outsourcing the finance function is a thing that many firms have tried to do.

The reorder point is

Norwich Company has determined the following costs are associated with one of its products. $E = E$ conomic order quantity (EOQ) $\mathrm { Q } =$ Annual quantity used in units $\quad$ $\quad$ $\quad$ $\quad$$\quad$ 4800 $P =$ Cost of placing one order (f) $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ 3 $\mathrm { C } = \mathrm { A }$ nnual cost of carrying one unit in stock (E) $\quad$ 8 - If the cost of carrying one unit in stock is increased to £4 and the annual quantity used in units decreases to 10,000 units the economic order quantity (EOQ) is

ERP represents a process-oriented information system based on value chain thinking

Norwich Company has determined the following costs are associated with one of its products. $E = E$ conomic order quantity (EOQ) $\mathrm { Q } =$ Annual quantity used in units $\quad$ $\quad$ $\quad$ $\quad$$\quad$ 4800 $P =$ Cost of placing one order (f) $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ 3 $\mathrm { C } = \mathrm { A }$ nnual cost of carrying one unit in stock (E) $\quad$ 8 - If the annual cost of carrying one unit in stock is increased to £10 and the cost of placing one order is increased to £5 the economic order quantity (EOQ) is

Norwich Company has determined the following costs are associated with one of its products. $E = E$ conomic order quantity (EOQ) $\mathrm { Q } =$ Annual quantity used in units $\quad$ $\quad$ $\quad$ $\quad$$\quad$ 4800 $P =$ Cost of placing one order (f) $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ 3 $\mathrm { C } = \mathrm { A }$ nnual cost of carrying one unit in stock (E) $\quad$ 8 - If the cost of carrying one unit in stock is increased to £4 and the annual quantity used in units decreases to 14,000 units the economic order quantity (EOQ) is

Newcastle Company has determined the following costs are associated with one of its products. $E = E$ conomic order quantity (EOQ) $\mathrm { Q } =$ Annual quantity used in units $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ 3000 $P =$ Cost of placing one order ( $( £ )$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ 10 $C = A$ nnual cost of carrying one unit in stock (£) $\quad$ 0.8 - If the cost of placing an order is increased to £15 and the annual quantity used in units increases to 4,000 units, the economic order quantity (EOQ) is