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Which of these statements about the production order quantity model is FALSE? The production order quantity model is appropriate

Rzqust [24]

Answer:

Question is written again to add options:

A. The production order quantity model is appropriate when the assumptions of the basic EOQ model are met, except that receipt is noninstantaneous.

B. Average inventory is more than one-half of the production order quantity.

C. Because receipt is noninstantaneous, some units are used immediately and not stored in inventory.

D. All else equal, the smaller the ratio of demand rate to production rate, the smaller is the production order quantity.

E. None of these is false.

The correct answer is option B "Average inventory is more than one-half of the production order quantity."

Explanation:

With an inventory, it is possible to separate parts of the production process , to separate assets from goods are yet to be produced or are already produced that could serve as a source of income for a company.

An average inventory is less than one-half of the production order quantity.

The production order quantity model doesn't make it possible for the ordered quantity to be received at one time.

The production order quantity model helps a company on how to manage inventory holding costs and the average fixed ordering cost, thereby making it possible for a company to check and minimize its inventory cost and to have a guide on what quantity to produce at every point in time.

6 0

2 years ago

The chart shows the marginal cost and marginal revenue of producing apple pies.

Liula [17]

Answer:

The marginal cost will most likely increase to $2.00

Explanation:

Because I just did it.

7 0

1 year ago

Read 2 more answers

Theo wants to have $40,000 for a down payment on a house five years from now. He can either deposit one lump sum today or he can

juin [17]

Answer:

$1932.37

Explanation:

To find out how much additional money he must deposit if he waits for 1 year rather than making a deposit today we need to find the difference:

Difference = Value after 1 year - Present value

We first convert the interest rate percentage by dividing interest rate value by 100

Present Value = $40 000 / (1 + 0.035)5 = $7729.47

Value after 1 year = $40 000 / (1 + 0.035)4 = $9661.81

Difference = $9661.81 - $7729.47 = $1932.37

4 0

1 year ago

Some poople argue that the only beneficiary of the entrepreneurial wealth is the entreprenceur him/herselt Do you agree? Why or

Ugo [173]

I do not agree that “the only beneficiary of the entrepreneurial wealth is the entrepreneur him/herself.”

The entrepreneur may be the chief beneficiary when she is alive to reap the rewards of their entrepreneurial efforts. But, she is certainly not the only beneficiary of the entrepreneurial wealth that she creates. Nobody works in isolation. When the entrepreneur commences her business, society as a whole benefits because any individual wealth created increases the wealth of the nation and the world. She only gets the profit share of the created wealth. Customers who patronize her services and goods also derive satisfaction of needs (utility or value). The entrepreneur's wealth is also shared to the government in form of taxes. Suppliers of primary goods and services also share in the wealth of the entrepreneur. And employees of the entrepreneur also take a large share of the created wealth.

But, who is an entrepreneur? She is somebody who assumes some entrepreneurial (first-time) risks in order to set up a business for the manufacture or provision of goods and services for the purpose of profit. Her business may not be profitable in the short-run. She can even lose tons of money initially until the profit stage sets in. As she preserves, the profits will start rolling in, provided she had done her homework well.

8 0

1 year ago

Barnett Industries, Inc., issued $600,000 of 8% bonds on January 1, 2019. The bonds pay interest semiannually on July 1 and Janu

Vera_Pavlovna [14]

Answer:

1. The selling price of the bonds is $590.976.46

2 .The journal entry for the issuance of the bonds and bond issue costs would be as follows:

Debit Credit

Cash $538,976.26

Discount on bonds payable $39,023.74

Unamortized bonds issue costs $22,000

Bonds Payable $600,000

3. Assuming that Barnett uses IFRS, the journal entry for the issuance of the bonds would be as follows:

Debit Credit

Cash $600,000

Bonds Payable $600,000

Explanation:

In order to calculate the selling price of the bonds we would have to calculate first the present value of particular and present value of interest, hence:

present value of particular=($600,000×0.414643)=$248,785.80

present value of interest=$600,000×4%13.007936=$312,190.46

Therefore, selling price of the bonds=present value of particular+present value of interest

1. Selling price of the bonds=$248,785.80+$312,190.46=$590.976.46

2. The journal entry for the issuance of the bonds and bond issue costs would be as follows:

Debit Credit

Cash $538,976.26

Discount on bonds payable $39,023.74

Unamortized bonds issue costs $22,000

Bonds Payable $600,000

3. Assuming that Barnett uses IFRS, the journal entry for the issuance of the bonds would be as follows:

Debit Credit

Cash $600,000

Bonds Payable $600,000

4 0

2 years ago