Exam 18: Responsibility Accounting, Performance Evaluation and Transfer Pricing

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 the economic order quantity (EOQ) is

The plant layout under JIT emphasises

Chelsea Company has determined the following costs are associated with one of its products. Lead time (weeks) 9 Average weekly usage (units) 70 Maximum weekly us age (units) 90 - The safety stock is

The flow of goods through a JIT system is based on

Benefits of a JIT system include increased working capital

Discuss the advantages and disadvantages of benchmarking. Why has it been so successful?

Firms will not usually outsource for one of the following reasons:

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 safety stock is

Improving manufacturing flow lines is not relevant or required when introducing a JIT system

Firms will not usually outsource for one of the following reasons