FNAN 522 Mod 7 Homework with 100- correct answers

FNAN 522 Mod 7 Homework
with 100% correct answers
A company has a holding cost per unit of $5. Each order has a fixed
cost of $8 and the annual demand quantity is 150,000 units. What is
the company's optimal order quantity?
693 units



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A company that manufactures 4th of July decorations is looking to
improve its inventory management. Which of the following should it
consider as it redesigns its inventory system?
a. It should analyze its cash flow so it has enough cash to purchase
its stock.
b. It should review its past sales data to determine the pattern of
demand for its goods.
c. All of these answers.
d. It should calculate the lag time in its supply chain.
c. All of these answers.
A company values its inventory by assuming that the most recently
produced items are sold first. This inventory valuation method is
known as ___.
a. Moving Average Cost Method
b. LIFO
c. Weighted Average Cost Method
d. FIFO
LIFO
A customer has 45 days from the date of invoice to pay a bill in full,
but if he pays within 15 days of the invoice, he gets a 10% discount.
Which of the following describes these terms of trade?
a. 10/15, net 45.
b. 15/45, net 10.