Answer:
Option (B) is correct.
Explanation:
Given that,
Lot size = 600
Average demand per week = 100 units
Lead time = 4 weeks
Cycle inventory is determined by dividing the lot size by 2. It is calculated as follows:
= Lot size ÷ 2
= 600 ÷ 2
= 300 units
Pipeline inventories is determined by the product of average demand and lead time from plant to wholesaler.
Pipeline inventories:
= Average demand × Lead time
= 100 × 4
= 400 units
Hence, Total cycle + Pipeline inventories = 300 units + 400 units
= 700 units
Now, if the plant reduces its lead time from 4 to 2 weeks and lot size remains the same, then
Cycle inventory:
= Lot size ÷ 2
= 600 ÷ 2
= 300 units
Pipeline inventories:
= Average demand × Lead time
= 100 × 2
= 200 units
Hence, New Total cycle + Pipeline inventories = 300 units + 200 units
= 500 units
Answer:
Option "A" is the correct answer to the following statement.
Explanation:
Implicit cost is a special type of opportunity cost, its generate when an organization or a business has to pay his cost and does not necessary to show it. for example, a businessman gets a salary from his organization.
- In this situation, Wilson owns a club and works as an accountant in it.
- This type of cost defines an Implicit cost for Wilson's health club.
Answer:
<u>1. Johann is looking to double the profits of his lemonade stand</u>
Explanation:
Note that Johann was<em> still making m</em>oney from lemonade stand but was not content with the profits he was making that was his argument or reason for increasing the price of a cup of lemonade from 25 cents to 50 cents.
<em>Without having forsight</em> Johann's decision eventually resulted in him selling fewer cups at the new price and therefore making less money than before.
Solution:
The journal entries for Geraths in 2020
July 1st Cr Dr
No entry No entry
September 1st Cr Dr
Cash 2000
Accounts receivable 400
Cost of goods sold 1100
Inventory 1100
Unearned service revenue 554
Sales Revenue 1846
October 15th Cr Dr
Cash 400
Unearned service revenue 554
Service revenue 554
Accounts receivable 400
