C(r) = $30 + $3r calculates the cost of r rides; 10 rides cost $60.
It defines a cost function.The cost function determines the lowest cost of producing a given amount of output for some fixed factor prices. The cost function provides a description of a corporation's economic potential.
The term "cost function" refers to the functional connection between cost and output. It investigates the cost behavior at various output levels while assuming steady technological advancement. One way to put it is as follows: C= f(Q) (Q) (Where C signifies the manufacturing cost and Q the output quantity) (Where C denotes the manufacturing cost and Q the output quantity.)
In the event that Nathaniel takes ten rides, how much money will he have to spend overall? How much would he be required to pay for rr rides?First, we determine how much he must pay for the rr rides:
We can see that the entrance fee is $30 plus $3 for each game. The cost function is then: if he rides r times.
C(r) = $30 + $3r
Now, if he visits 10 rides, we must evaluate the aforementioned linear function at r = 10, which will result in:
C(10) = $30 + $3X10 = $60
For $60, you can take ten rides.
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the greater the perceived risk of an asset, the higher the required rate of return.
It is True that the greater the perceived risk of an asset, the higher the required rate of return.
financial perceived riskWhen a consumer considers their Return on Investment, they experience financial perceived risk. Financial perceived risk includes determining whether the product they intend to purchase is worth its price and whether the benefits of the product outweigh the investment they make.
We utilized difference-in-differences estimation to assess how changes in financial well-being differed between households who had a financial event between the first and second survey waves and households that did not have the same event in either survey wave.
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Crowdsourcing can provide a cost-saving alternative to hiring traditional creative talent for a new enterprise.
true or false
The answer is true. Some common alternatives of the word frugal include economical, parsimonious, and thrifty. All of these phrases pertain to being "careful in how one spends one's money or resources,"
But the word "frugal" implies a lack of luxury and a laid-back lifestyle. Cost savings refers to the benefit realised from the taking actions to reduce an organization's alternatives asset expenditure, which directly affects its bottom line. The efforts to cut costs can be made by boosting productivity and negotiating lower supply costs. The cost efficiency is the practise of reducing costs by improving a product or resources.
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(figure 67-11: comparing long-run equilibriums) in the figure, which of the following statements is false?
In the figure comparing Long-Run Equilibrium, the true statements is that both panels show markets that have many firms. The Option B is correct.
What is a Long-Run Equilibrium?A market is said to be in long-run equilibrium when its product prices have fully adjusted to production costs and the economy functions at its full potential. In long-run equilibrium, the unemployment rate drops to its natural state. When this occurs, the economy is using all of its resources and its actual GDP will be equal to its potential GDP.
This level of equilibrium involves a gradual process in which businesses adjust their prices and wages in reaction to long-term or permanent changes for example taxes, changes to health care costs, government spending.
An economy's actual GDP does not mostly match with its potential GDP since aggregate supply and demand are constantly changing. Because of this, the short-run equilibrium tends to fluctuate around the potential GDP instead of ever being equal to it.
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the required return by investors is important to financial managers except for which of the following reasons?
Financial managers value the required return from investors, with the exception of which of the following? It is what influences their financial ratios the most.
What functions do financial managers, investors, and financial markets perform?
Financial Market participants, Investors, and Financial Managers all have profit and return maximization as their primary goals. The Smart Investor uses a Financial Manager to their advantage to get recommendations on products that are beneficial for investments and then invests those products in financial markets.
Who is the financial manager's subordinate?In the financial hierarchy of a small business, the chief financial officer, management accountant, financial accountant, internal auditor, credit controller, and accounts payable accountant are some of the frequently used categories of heads of sub-departments.
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> Question 38 All of the following statements regarding flextime are true EXCEPT ?O it gives employees more personal control over times they work. O the workday is broken down into two categories. O all employees must be at work during core time. O it is desirable for people who want to work part-time. O it gives employees less say about what days they work! Question 39 2 pt A company is open for business from 9:00 a.m. to 5:00p.m., five days a week, and it wants to hire two people to fill one forty-hour-per- week position at the company. Which of the following best describes an alternative work schedule that could suit this organization's circumstances? O Compressed workweek O Job sharing O Job characteristics approach O Extended work schedule O Alternative workplaces Question 40 Which of the following is NOT a characteristic of constructive conflict? O It can energize behavior. O It can result in higher-quality decisions. O It can promote healthy competition. O It can stimulate new ideas.O It works best when people focus on emotions. Question 41 Wakefield Hospital has only one portable X-ray machine. The emergency room staff claim to have the greatest need for the machin the surgeons in the operating room are demanding access to the machine as well. The conflict between these two groups is a resulte ?O interpersonal differences. O resource constraints. O differing values. O excessive competitiveness. O differing process goals.
39) All of the following statements regarding flextime are true EXCEPT: "It is desirable for people who want to work part-time." (Option C)
40) company is open for business from 9:00 a.m. to 5:00 p.m., five days a week, and it wants to hire two people to fill one forty-hour-per- week position at the company. The option that best describes an alternative work schedule that could suit this organization's circumstances is: "Job Sharing" (Option B)
41) The option that is NOT a characteristic of constructive conflict is: 2It works best when people focus on emotions."(Option B)
42) "resource constraints." (Option B)
What is constructive conflict?Conflict is defined as an active disagreement between people who have different beliefs or ideas. Constructive conflict is defined as a disagreement with the goal of accepting other ideas and worldviews.
The constructive conflict stems from essential behaviors that lead to beneficial outcomes, such as presenting facts and explanations for ideas. Accepting inquiries and criticism about your ideas as beneficial to the group. Paying close attention to what others have to say.
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Which of the following is an explanation of why Oligopolists have an incentive to collude
A. The demand for each firm's product would be kinked
B. Each firm would face a perfectly inelastic demand for its product
C. Each firm would face a relatively inelastic demand for its product rather than a relatively elastic demand when firms raise prices independently
D. The market demand curve would become perfectly inelastic
Each firm would face a relatively inelastic demand for its product rather than a relatively elastic demand when firms raise prices independently
Each firm would face a relatively inelastic demand for its product rather than a relatively elastic demand when firms raise prices independently is reason why Oligopolists have an incentive to collude
Oligopolists is a participant in an oligopoly; one of a select few vendors with excessive market power
A market structure known as an oligopoly has a small number of enterprises, none of which can prevent the others from having a large impact. The market share of the major companies is calculated using the concentration ratio.
A market with a monopoly has just one producer, a duopoly has two businesses, and an oligopoly has three or more businesses. The maximum number of firms in an oligopoly is unknown, but it must be low enough such that each firm's activities have a major impact on the others.
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the longer the time to maturity, the less sensitive a bond's price will be to changes in interest rates.
In general, the longer the term, the more sensitive to interest rates. This indicates that for a given change in interest rates, the price of a bond with a longer duration will fluctuate more than the price of a bond with a shorter maturity.
interest ratesThe interest rate is the amount charged by a lender to a borrower and is expressed as a percentage of the principal—the amount lent. The annual percentage rate is the term used to describe the interest rate on a loan (APR). An interest rate can also be applied to the amount earned from a savings account or certificate of deposit at a bank or credit union. The interest earned on these deposit accounts is referred to as the annual percentage yield (APY).
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josiah's team missed a crucial deadline and lost a major client due to poor communication. as a result, his team is experiencing trust issues. josiah is looking for ways to improve trust across the team as a whole and has generated a few ideas. all of the following are likely to increase trust except: josiah creates a poster board with team goals, indicating the roles of each team member. josiah has individual check-ins with his team members to provide feedback. josiah plans to provide his team with more project training sessions to help improve their efficiency both as individuals and as a group. josiah limits meeting frequency in order to reduce the opportunity for conflict and dissent.
Josiah limiting meeting frequency in order to reduce the opportunity for conflict and dissent as this will hamper team spirit being formed.
What is Team Spirit?Team spirit is the sense of pride and commitment shared by team members, which motivates them to strive for excellence on their team. Being willing to go above and beyond the call of duty to assist coworkers is an illustration of high team spirit. This might be as easy as inviting a new hire to lunch on their first day so they have the chance to get to know someone at work, or it can be as complex as assisting a colleague with a significant project. The book Team Spirit is an engrossing and motivating read with real-life examples of leadership concepts and how one outstanding person uses them to build a fantastic team that wins the race.
Hence, Josiah limiting meeting frequency in order to reduce the opportunity for conflict and dissent as this will hamper team spirit being formed.
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Which of the following enables a company to tailor a particular aspect of enterprise software to the way a company does business?
Web services
Middleware
Configuration tables
Data dictionaries
Groupware
Configuration tables allow a corporation to adjust a specific component of enterprise software to the way it does business. Option C is correct.
What is the significance of Configuration tables?Configuration tables are used for Properties, its Templates, its Shapes, and Mashups to store values that do not change frequently, such as property values. Configuration tables are most commonly used to hold credentials and host information for an external resource.
It also enables a company to tailor a certain piece of enterprise software to the way it does business.
Therefore, option C is correct.
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you want to create a portfolio as risky as the market and you have $1 million to invest. given this information, fill in the rest of the following table. (please keep two digits after the decimal point.)
336,046.51 is the portfolio of the $1 million investment. Portfolios are mixtures of investments in varied ratios of risky equities and safe assets.
Please take note that the market and risk-free asset bets both equal 1.
Also,
Let x be the investment amount in Stock C.
Determining the amount invested in a risk-free asset is consequently (1,000,000 - 195,000 - 340,000 - x) = 465,000 - x.
Now,
Portfolio Risk equals 1.
1 = 0.90 * (195,000/1,000,000) + 1.15 * (340,000/1,000,000) + 1.29 * (x/1,000,000) + 0* ((465,000 - x)/1,000,000)
1 = 0.1755 + 0.391 + (1.29x/1,000,000)
1 = 0.5665 + (1.29x/1,000,000)
0.4335 = (1.29x/1,000,000)
433,500 = 1.29x
x = 336,046.51
Therefore, Please take note that the market and risk-free asset bets both equal 1.
Also,
Let x be the investment amount in Stock C.
Determining the amount invested in a risk-free asset is consequently (1,000,000 - 195,000 - 340,000 - x) = 465,000 - x.
Now,
Portfolio Risk equals 1.
1 = 0.90 * (195,000/1,000,000) + 1.15 * (340,000/1,000,000) + 1.29 * (x/1,000,000) + 0* ((465,000 - x)/1,000,000)
1 = 0.1755 + 0.391 + (1.29x/1,000,000)
1 = 0.5665 + (1.29x/1,000,000)
0.4335 = (1.29x/1,000,000)
433,500 = 1.29x
x = 336,046.51
Therefore, Portfolios are mixtures of investments in varied ratios of risky equities and safe assets. Instead of investing in risky assets, portfolios can be constructed to have higher returns and lower risks.
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marcus is applying for a new job. they have asked for copies of his transcripts, a list of personal references, and letters of recommendations from his past employers. he also has to complete a face-to-face interview. which of these is the best indicator of his potential performance at this new job? please choose the correct answer from the following choices, and then select the submit answer button. answer choices the recommendations from his past employers his list of personal references the interview his transcripts
Marcus is putting in a job application. Face-to-face interview is the best indicator of his potential performance at this new job.
Face-to-face interviews are structured interviews carried out by professional interviewers who utilise a standard interview methodology and a standard set of replies to capture the responses of participants.
With the use of this technique, factual data, consumer opinions, attitudes, preferences, and other information that emerges from the respondent's dialogue may be collected. Face-to-face interviewing enhances the accuracy of the data collected and boosts response rates.
Employee development uses the concept of potential vs. performance to distinguish between the sometimes conflated ideas of performance and potential. Performance describes the regular outcomes that individual displays in their present position, but potential forecasts the chance of future success.
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product __________ refers to the entire product category or industry, often illustrated in a product life cycle curve.
Product class refers to the entire product category or industry, often illustrated in a product life cycle curve.
What is product class?A product class is a collection of goods that are similar to one another or are frequently used as substitutes for one another. Depending on how easily the different items can be substituted, the class is either deemed narrow or broad. For instance, the breakfast meats class may only have bacon, ham, and sausage.
Class A purchases are strategic purchases that have become virtually always optimized by enterprises. They are direct inputs into the production process. Raw resources for industrial firms are an example.
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T/F a large organization is struggling to close the gaps in skill levels that exist between its employees and those from competing companies.
The best thing a firm can do to reduce the skills gap between its employees and the competition is to design and implement a training programme to enhance and develop employees' talents so that they are competitive with others.
What is competition in business?Competition is a condition in a market when businesses or sellers compete with one another for customers' business in an effort to attain a certain business goal, such as earnings, sales, and/or market share. In this context, rivalry and competition are frequently used interchangeably. Economic fundamentals show that when businesses must compete for customers, the result is cheaper pricing, better goods and services, more variety, and more innovation. Not just in product markets, but also in labour markets, competition is essential. These companies compete in the same market by providing comparable (or identical) goods and services. They compete for the same clientele as well. Examples of direct competitors that are well-known are Apple and Android, Pepsi and Coca-Cola, and Netflix and Hulu.
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total cost cost driver square feet number of employees janitorial $150,000 square footage serviced 200 40 cafeteria 50,000 number of employees 20,000 12 cutting 1,125,000 4,000 120 assembly 1,100,000 16,000 40 the janitorial and cafeteria departments are support departments. determine the dollar amount of the janitorial department costs to be allocated to the (a) cutting and (b) assembly departments using the direct method. a. cutting department $fill in the blank 1 b. assembly department $fill in the blank 2
The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.
The final answer is cost allocated based on the area acquired by the departments.
Cafeteria = $75000Cutting = $15000Assembly = $60000Cost allocation
Cost allocation is the process of relieving the cost centers of shared service organizations that offer a good or service. Internal clients' cost centers that use the goods and services are then given credit for the related charge.
Determine which areas of a business are in charge of which costs by using cost allocation. This can fairly share accountability for expenses and spending among several departments within a business. The information can then be used by specific business units to make crucial business choices.
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In which of the following independent situations would the transaction most likely be characterized as a disguised sale?
a. Partner George contributes appreciated property to the GM Partnership, and three years later GM distributes $100,000 proportionately to the partners.
b. Brianna contributes property with a basis of $20,000 and a fair market value of $50,000 to the BGB Partnership in exchange for a 20% interest therein. The partnership agrees to distribute $20,000 to Brianna in fifteen months, if partnership cash flows from operations exceed $100,000 at that time. The partnership does not expect to produce operating cash flows of over $100,000 for at least five years.
c. Luis contributes appreciated property to the BLP Partnership. Thirty months later, he receives a distribution from the partnership of $15,000 cash. None of the other partners received a distribution. There was no agreement that BLP would make the distribution, and Luis would have made the contribution whether or not the partnership made the distribution.
d. None of the above transactions will be treated as a disguised sale.
D. None of the above transactions will be treated as a disguised sale.
A monetary transaction is an settlement, or communication, between a consumer and supplier to trade items, services, or belongings for payment. Any transaction includes a trade within the popularity of the finances of or greater businesses or people.
A transaction is a business event that has a financial effect on an entity's monetary statements and is recorded as an entry in its accounting records. Examples of transactions are as follows: Paying a provider for offerings rendered or items brought.
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a banker may perform a financial ratio analysis to assess a firm's ability to repay debt in a timely manner.True or False
Bankers perform financial ratio analysis to check whether any firm can repay their debt or not on time. So the given statement is true.
What is financial ratio analysis?The method of comparing the relationship (or ratio) between two or more financial data points from a company's financial statements is known as financial ratio analysis. It is mostly employed as a means of conducting fair comparisons across time and between various businesses or industries.
There are many factors that comes under financial ratio analysis but liquidity analysis is a factor that is used to evaluate company's ability to pay its immediate debt commitments out of its present assets.
The following two financial ratios are crucial for evaluating liquidity:
Current ratio is calculated as Current Assets / Current Liabilities.
Inventory less current assets divided by current liabilities is the quick ratio.
Both the quick ratio and the current ratio are also referred to as the working capital ratio and the acid test ratio, respectively.
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consider a profit-maximizing firm in a competitive industry. indicate the condition when the firm should shut down production:
A profit-maximizing firm decides to shut down in the short run when price is less than average variable cost.
What is a variable cost, and give an example?Costs that fluctuate with volume are known as variable costs. Variable costs include things like raw materials, piece-rate labor, production supplies, commissions, delivery costs, packaging supplies, and credit card fees. The "Cost of Goods Sold" is the term used in some accounting statements to refer to the variable costs of production.
Who defines variable cost per unit?The costs of each unit of goods that a business produces are referred to as variable costs per unit. Variable costs fluctuate in response to changes in the volume of production or the intensity of the business's activities. The business environment has an impact on unit variable cost; when producing more units of a good, additional costs are incurred.
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When two products are the same, pricing discrimination with an anticompetitive effect is prohibited under the Robinson-Patman Act unless: Select 2 answers.) A.the costs of serving the buyer are lower. B.the seller notifies the market of the discrimination. C.the seller is meeting competition. D.buyers paying the higher price approve of the discriminatory policy.
When two products are the same, pricing discrimination with an anticompetitive effect is prohibited under the Robinson-Patman Act unless the seller is meeting competition. So, the correct answer is option C.
When a company sells equal or comparable goods or services at various prices without justification from varying expenses, this practise is known as price discrimination. Price discrimination from an economic standpoint necessitates a certain amount of market power, arbitrage control, varying price sensitivity between buyers or units, and the capacity to connect these sensitivities to the right purchasers.
From a legal standpoint, a number of legislative provisions, such as Articles 101-102 in the European Union and 1-2 of the Sherman Act in the United States, target price discrimination. Because price discrimination can take many different forms, different activity will have different enforcement criteria.
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based on the figure, if the economy starts at point a and ends up at point e, then in the short run, there was:
Based on the figure, if the economy starts at point A and ends up at point E, then in the short run, there was: an increase in aggregate demand.
What Is Aggregate Demand?The desire for all final products and services generated in an economy is measured as aggregate demand. The entire amount of money spent on those goods and services at a particular price point and time is referred to as aggregate demand.
How significant is aggregate demand, and what does it mean?An economic system's total demand for goods and services can be examined using the concept of aggregate demand. Macroeconomicians use it as a tool to assess or forecast the strength of the entire economy in a nation over a specific time period, typically one year.
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Byron works at stich-rite clothing factory. The company is required to maintain safe working conditions under the.
Byron's company is required to maintain safe working conditions under the Occupational Safety and Health Act.
What is Occupational Safety and Health?Occupational Safety and Health (OSH) focuses heavily on primary prevention of hazards and covers all facets of health and safety in the workplace. Its objective is to stop accidents and injury caused by work-related activities.
Why is occupational health important?Concerns about the potential effects of employment and the workplace environment on employees' physical and mental health make up a significant portion of occupational health. It also discusses the impact that a worker's health may have on their capacity for work. Simply put, this refers to the relationship between job and health.
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"Be all you can be is an example of a
Multiple Choice
a. mission statement.
b. slogan or saying story,
c. legend, or myth.
d. role modeling
according to economic liberals, what is the role of the state in international economics?
The notion that the state exists primarily to amass money is rejected by liberals. The state is there to protect property and to give security, not the other way around. The term "political economy" has come to be used broadly in the liberal tradition to refer to the interaction between governments, markets, welfare, and wealth.
What function does the state serve in economic liberalism?When government action results in inefficient results, economic liberalism is opposed. They are in favor of a powerful state that upholds contract law and the right to private property. Additionally, they might be in favor of government action to address market imperfections.
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Recognition of revenue from sale of finished goods is: Multiple Choice O An asset use transaction. O An asset exchange transaction. O An asset source transaction. O A claims exchange transaction. Which source document provides information for the journal entry to transfer costs from the Work in Process Inventory account to the Finished Goods Inventory account? Multiple Choice O Job cost sheet O Work ticket O Standard cost card O Materials requisition Factory insurance is an indirect product cost and part of overhead. True or False True False
Recognition of revenue from sale of finished goods is an asset source transaction.
Why is a job order cost sheet important?A job cost sheet is a document that lists all the expenses incurred to finish a project. Both during the project and after it is over, these costs can be recorded. The accounting division creates this record to confirm that expenditures were within the budgeted amount. future job costs are estimated. To ascertain whether a job is lucrative, job order pricing is helpful. The worth of the supplies, labor, and overhead that will be used to complete that particular work can then be estimated by the company.
Job cost sheet provides information for the journal entry to transfer costs from the Work in Process Inventory account to the Finished Goods Inventory account
Factory insurance is an indirect product cost and part of overhead is true.
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firms use blank as a way of measuring progress toward set performance goals, and if necessary, to apply corrective measures.
Firms' bureaucratic control systems as a way of measuring progress toward set performance goals, and if necessary, applying corrective measures.
What is a firm?A company, such as a corporation, is a large corporation that produces and distributes services and products with the goal of generating income and turning a profit.
Bureaucratic control systems are made to monitor tremendous progress has been made toward predetermined goals as, if appropriate, to take corrective action to guarantee that goals are met by supervisors. the client perspective, the operational perspective, the innovation and learning, and also the business advantage.
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an insurance agent, whose compensation is based on commission, is asked by a homeowner if damage from earthquakes is covered by the policy. it is company policy to avoid providing information about earthquake damage, so the salesperson misleads the homeowner. in this case the salesperson
In the given case, the salesperson can be held accountable.
What is the earthquake?An earthquake is a ground shaking as a result of an unexpected slip on a fault. Stresses in the earth's outer layer push the sides of the fault collectively. Strain builds up and the rocks slip, releasing power in waves that journey through the earth's crust and purpose the shaking that we sense for the duration of an earthquake.
In the given case, A homeowner asks an insurance agent, whose remuneration is dependent on commission, if earthquake damage is covered by the policy. Because it is against corporate policy to provide information concerning earthquake damage, the salesman misleads the homeowner. Then the salesman is held liable.
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Which of the following is true at the nominal interest rate (i3) ?
A. The money market is at equilibrium because the quantity demanded is equal to the quantity supplied.
B. There is a surplus in the money market because the quantity demanded is less than the quantity supplied.
C. There is a surplus in the money market because the quantity demanded is greater than the quantity supplied.
D. There is a shortage in the money market because the quantity demanded is greater than the quantity supplied.
E. There is a shortage in the money market because the quantity demanded is less than the quantity supplied.
Because the amount requested and the amount supplied are equal, the nominal interest rate (i3) indicates that the money market is in equilibrium.
Which of the following would cause nominal interest rates to rise?As money demand rises, nominal interest rates also rise. GDP and price levels rise in response to rising aggregate demand, which means individuals will require more money to purchase more products and services. Because of this, there will be a greater need for money, which will raise nominal interest rates.
What elements have an impact on nominal interest rates?Numerous variables, such as the supply and demand of money, federal government action, the central bank's monetary policy, and many others, can affect nominal interest rates.
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What are the main sources of funding for the north american model of wildlife conservation?.
The North America Model of Wildlife Conservation gets funds from the sale of hunting and fishing licenses and from the excise taxes collected on specific hunting and fishing equipment.
What is wildlife conservation?Wildlife conservation is the conscious effort made by humans to protect plants, other animal species, and their habitats. Wildlife conservation is critical because wildlife and wilderness play an important role in preserving ecological balance and improving human quality of life.
Also, Wildlife Service provides federal aid to state wildlife agencies to support a variety of hunting-related projects, including hunter education, land acquisition, and improvement of wildlife habitat.
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Which product would be considered part of the business-to-business market? Multiple Choice classes at a university for a college freshman O pens and pencils for that student O books for the class members O a computer for the instructor to use while teaching the class The four activities that are part of the marketing process are also referred to as the Multiple Choice marketing concept. О O product mix. selling concept. marketing mix.
A computer used by the teacher to educate the class would be regarded as a product for the business-to-business sector. As a result, choice (D) is the acceptable one.
The marketing mix is another name for the four activities that make up the marketing process. As a result, choice (D) is the best way to respond.
What is Business to business marketing?Business-to-business (B2B), sometimes known as B-to-B, is a type of transaction between two or more businesses.
Examples include a producer and wholesaler or a wholesaler and a store. Instead of between a corporation and a single customer, business-to-business refers to transactions that take place between businesses.
Therefore, option (D) is correct in both cases.
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atch the cost variance component to its definition. actual quantity actual quantity drop zone empty. standard quantity standard quantity drop zone empty. actual price actual price drop zone empty. standard price standard price drop zone empty. the expected input for the quantity of output the input used to manufacture the quantity of output the preset, or expected price the amount paid to acquire input
Actual quantity= input used to manufacture the quantity of output, Standard= expected input for the quantity of output, Actual= the amount paid to acquire input and Standard= expected price.
The discrepancy between actual and anticipated utilization of something is known as a quantity variation. For instance, there is a one-pound amount difference if 11 pounds of iron are actually utilized to build a widget instead of the normal 10 pounds. The variance could relate to anything, including the number of hours of machine time utilized, the amount of square footage needed, and more. It often applies to direct materials used in the creation of a product.
The quantity variance formula is as follows (Actual quantity used - Standard quantity used) × Standard cost per unit Equals Variance in quantity As a result, the normal cost per unit is multiplied by the quantity variance's dollar value. Any variation between the actual and average price per unit is calculated using a different variance called the rate variance.
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The annual demand for an item is 10,000 units. The cost to process an order is $75 and the annual inventory holding cost is 20% of item cost. What is the optimal order quantity, given the following price breaks for purchasing the item?.
Given the following price cuts for buying the item, the optimal order quantity is (E) 5000.
What is the optimal order quantity?Choosing the least expensive quantity of goods to purchase will be made easier for you if you know your company's ideal order quantity.
This formula essentially tells you how much inventory you'll need to keep on hand to meet demand without going overboard.
To lower logistics costs, warehousing space costs, stockouts, and overstock costs, businesses use a calculation known as the economic order quantity, or EOQ, to determine the best order quantity.
"Optimal lot size" is another name for it.
Ranges 1 and 2 are therefore not relevant because the EOQ exceeds the upper bound of each range.
The figures for the other two ranges are:
Range 3 Range 4
Q*: 1805.788 2013.468
Order Quantity: 1805.788 5000
Cost of holding: $415.33 $925.00
Cost of setup: $415.33 $150.00
Cost per unit: $23,000.00 $18,500.00
Total cost, Tc: $19,575.00 $23,830.66
So, purchase 5000 items at once.
Therefore, given the following price cuts for buying the item, the optimal order quantity is (E) 5000.
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Complete question:
The annual demand for an item is 10,000 units. The cost to process an order is $75 and the annual inventory holding cost is 20% of the item cost. What is the optimal order quantity, given the following price breaks for purchasing the item?
Quantity: Price:
1-9 $2.95 per unit
10 - 999 $2.50 per unit
1,000 - 4,999 $2.30 per unit
5,000 or more $1.85 per unit
A) 1000
B) 1500
C) 2500
D) 4000
E) 5000
