题目内容

Which TWO of the following are required in order to calculate the Economic Order Quantity (EOQ)?

A. Cost of holding a unit of inventory for the period
B. Average inventory
Cost of ordering a consignment
D. Purchases in the current period

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Why would a business prefer to hold low volumes of inventory?

A. Because the cost of ordering inventory is high
Because the amount you use doesn’t vary
C. Because the cost of holding inventory is very high
D. Because you can only order a set amount

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Which TWO of the following are reasons why an organisation may decide to use absorption costing?

A. To allocate the fixed costs of production to units
B. To determine how much inventory to maintain
C. To know how profitable a product is
D. To help to plan production levels

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A business producing product Z has a production process that involves two staff remotely overseeing the operation of five machines. Which of the following is the most suitable basis for absorption costing?

A. Estimated production
B. Machine hours
C. Labour hours
D. Raw materials used

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A factory produces three products: A, B and C. The direct costs per unit and the number of units produced are:Indirect costs are allocated using direct costs as a basis.If the total indirect costs are $27,500 what is the indirect cost per unit allocated to product B?

A. $11.22
B. $4.68
C. $14.03
D. $8.87

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Which TWO of the following are required in order to calculate the Economic Order Quantity (EOQ)?

A. Cost of holding a unit of inventory for the period B. Average inventory Cost of ordering a consignment D. Purchases in the current period

Why would a business prefer to hold low volumes of inventory?

Which TWO of the following are reasons why an organisation may decide to use absorption costing?

A business producing product Z has a production process that involves two staff remotely overseeing the operation of five machines. Which of the following is the most suitable basis for absorption costing?

A factory produces three products: A, B and C. The direct costs per unit and the number of units produced are:Indirect costs are allocated using direct costs as a basis.If the total indirect costs are $27,500 what is the indirect cost per unit allocated to product B?

A. Cost of holding a unit of inventory for the period
B. Average inventory
Cost of ordering a consignment
D. Purchases in the current period