TEST BANK FOR
#z #z
Managerial #zAccounting: #zCreating #zValue #zin #za #zDynamic #zBusiness #zEnvironment,13th #zEdition #zby
#zRonald
Chapter 1-17#z
Appendix III #z
1) The #zEOQ #zmodel #zis #za #zmathematical #ztool #zfor #zdetermining #zthe #zorder #zquantity #zthat:
A) maximizes #zthe #zcosts #zof #zordering #zand #zholding #zinventory.
B) equals #zthe #zcosts #zof #zordering #zand #zholding #zinventory.
C) minimizes #zthe #zcosts #zof #zordering #zand #zholding All Chapters ✅
#z
inventory.
#z
D) has #zno #zeffect #zon #zthe #zcosts #zof #zordering #zand
#zholding #zinventory?
E) none #zof #zthese #zanswers #zare #zcorrect.
✅
Answers Included#z
2) Inventory#zdecisions #zinvolve #za #zdelicate #zbalance #zbetween #zwhich #zof #zthe #zfollowing
classes #zof #zcosts?
#z
A) Ordering #zcosts, #zadvertising #zcosts, #zand #zshipping #zcosts
B) Advertising #zcosts, #zholding #zcosts, #zand #zshortage #zcosts
C) Ordering #zcosts, #zholding #zcosts, #zand #zshortage #zcosts
D) Ordering #zcosts, #zshipping #zcosts, #zand #zshortage #zcosts
E) Shipping #zcosts, #zholding #zcosts, #zand #zshortage #zcosts
3) Which #zone #zof #zthe #zfollowing #zis #ztrue #zof #za #zjust-in-time #z(JIT) #zsystem?
A) JIT #zsystem #zuses #za #z“pull” #zapproach #zto #zcontrolling #zmanufacturing
B) Inventory#zof #zraw #zmaterials #zand #zparts #zare #zkept #zas #za #zbuffer
C) Inventory #zof #zpartially #zcompleted #zparts #zare #zkept #zas #za #zbuffer
D) Finished #zgoods #zare #zkept #zas #za #zbuffer
E) None #zof #zthe #zanswers #zare #zcorrect
4) Which #zone #zof #zthe #zfollowing #zis #ztrue #zof #zEconomic #zOrder #zQuantity #z(EOQ)?
A) The #zEOQ #zapproach #ztakes #zthe #zview #zthat #zsome #zinventory #zis #znecessary #zin
#zorder #zto #zoptimize #zthe #zorder #zquantity
B) Is #zcalculates #zas #zthe #zsquare #zroot #zof #zthe #zfollowing: #z(2 #z× #zannual #zrequirement #z×
#zcost #zper #zorder) #z÷ #zannual #zholding #zcost #zper #zunit
C) The #zgraphical #zapproach #zis #zone #zmethod #zof #zcalculating #zEOQ
D) A #zmathematical #ztool #zfor #zdetermining #zthe #zorder #zquantity#zthat #zminimizes #zthe
#zcost #zof #zordering #zand #zholding #zinventory
E) All #zof #zthe #zanswers #zare #zcorrect
,5) Which #zof #zthe #zfollowing #zis #za #zway #zthat #zJIT #zefficiencies #zare #zachieved?
A) Negotiating #zlong-term #zsupply #zagreements
B) Eliminating #zinspections
C) Reducing #zthe #znumber #zof #zvendors
D) Making #zless #zfrequent #zpayments
E) All #zof #zthe #zanswers #zare #zcorrect
6) Inventory #zholding #zcosts #ztypically #zinclude:
A) clerical #zcosts #zof #zpurchase-order #zpreparation.
B) costs #zof #zdeterioration, #ztheft, #zor #zspoilage.
C) costs #zassociated #zwith #zlost #zsales #zto #zcustomers.
D) forgone #zinterest #zon #zmoney #ztied #zup #zin #zinventory.
E) both #zcosts #zof #zdeterioration, #ztheft, #zor #zspoilage #zand #zforgone #zinterest #zon #zmoney
tied #zup #zin #zinventory.
#z
7) Inventory#zholding #zcosts #zwould #ztypically #zinclude #zall #zof #zthe #zfollowing #zexcept:
A) insurance.
B) theft.
C) transportation.
D) obsolescence.
E) warehouse #zrent.
8) Which #zof #zthe #zfollowing #zis #zclassified #zas #zan #zinventory #zshortage #zcost?
A) Purchase #zorder #zpreparation
B) Production #zdisruption
C) Lost #zsales #zand #zlost #zcustomers
D) Spoilage
E) Both #zproduction #zdisruption #zand #zlost #zsales #zand #zlost #zcustomers
9) At #zthe #zeconomic #zorder #zquantity:
A) total #zannual #zinventory #zcosts, #zholding #zcosts, #zand #zordering #zcosts #zare #zall #zminimized.
B) total #zannual #zinventory #zcosts #zand #zholding #zcosts #zare #zminimized.
C) total #zannual #zinventory #zcosts #zare #zminimized, #zand #zholding #zcosts #zequal #zordering #zcosts.
D) total #zannual #zinventory #zcosts #zare #zminimized, #zand #zholding #zcosts #zexceed #zordering #zcosts.
E) total #zannual #zinventory #zcosts #zare #zminimized, #zand #zordering #zcosts #zexceed #zholding #zcosts.
,10) Langdon Enterprises uses an economic order quantity model and has determined an optimal
order size of 2,200 units. Annual demand is 44,000 units, ordering costs are $60 per order,
and holding costs are $6 per unit. The company's annual holding costs total:
A) $13,200.
B) $14,400.
C) $485,200.
D) $265,200.
E) none of the answers is correct.
11) Langdon Enterprises uses an economic order quantity model and has determined an optimal
order size of 500 units. Annual demand is 10,000 units, ordering costs are $50 per order, and
holding costs are $4 per unit. The company's annual holding costs total:
A) $2,000.
B) $3,000.
C) $21,000.
D) $41,000.
E) none of the answers is correct.
12) Reflection Graphics uses a special purpose paper on 80% of its jobs. The paper is purchased
in 310-sheet packages at a cost of $310 per package. Management estimates that the cost of
placing and receiving a typical order is $36, and the annual cost of carrying a package in
inventory is $3.60. Reflection Graphics uses 4,700 packages of paper each year. Production
is constant, and the lead time to receive an order is two week.
The economic order quantity is approximately:
Note: Round your final answer to the nearest whole number.
A) 307 packages.
B) 4,018 packages.
C) 2,093 packages.
D) 1,636 packages.
E) 1,166 packages.
, 13) Reflection #zGraphics #zuses #za #zspecial #zpurpose #zpaper #zon #z80% #zof #zits #zjobs. #zThe #zpaper #zis
#zpurchased #zin #z100-sheet #zpackages #zat #za #zcost #zof #z$100 #zper #zpackage. #zManagement
#zestimates #zthat #zthe #zcost #zof #zplacing #zand #zreceiving #za #ztypical #zorder #zis #z$15, #zand #zthe
#zannual #zcost #zof #zcarrying #za #zpackage #zin #zinventory #zis #z$1.50. #zReflection #zGraphics #zuses
#z2,600 #zpackages #zof #zpaper #zeach #z year. #zProduction #zis #zconstant, #zand #zthe #zlead #ztime #zto
#zreceive #zan #zorder #zis #zone #zweek.
The #zeconomic #zorder #zquantity#zis #zapproximately:
A) 203 #zpackages.
B) 225 #zpackages.
C) 228 #zpackages.
D) 565 #zpackages.
E) 631 #zpackages.
14) Reflection #zGraphics #zuses #za #zspecial #zpurpose #zpaper #zon #z80% #zof #zits #zjobs. #zThe #zpaper #zis
#zpurchased #zin #z350-sheet #zpackages #zat #za #zcost #zof #z$350 #zper #zpackage. #zManagement
#zestimates #zthat #zthe #zcost #zof #zplacing #zand #zreceiving #za #ztypical #zorder #zis #z$40, #zand #zthe
#zannual #zcost #zof #zcarrying #za #zpackage #zin #zinventory #zis #z$4.00. #zReflection #zGraphics #zuses
#z5,100 #zpackages #zof #zpaper #zeach #z year. #zProduction #zis #zconstant, #zand #zthe #zlead #ztime #zto
#zreceive #zan #zorder #zis #zthree #zweeks.
Note: #zAssume #z52 #zweeks #zin #za #zyear. #zDo #znot #zround #zyour #zintermediate #zcalculations.
#zRound #zyour #zfinal #zanswer #zto #znearest #zwhole #zdollar #zamount.
The #zreorder #zpoint #zis:
A) 147 #zpackages.
B) 1,440 #zpackages.
C) 5,600 #zpackages.
D) 350 #zpackages.
E) 294 #zpackages.
15) Reflection #zGraphics #zuses #za #zspecial #zpurpose #zpaper #zon #z80% #zof #zits #zjobs. #zThe #zpaper #zis
#zpurchased #zin #z100-sheet #zpackages #zat #za #zcost #zof #z$100 #zper #zpackage. #zManagement
#zestimates #zthat #zthe #zcost #zof #zplacing #zand #zreceiving #za #ztypical #zorder #zis #z$15, #zand #zthe
#zannual #zcost #zof #zcarrying #za #zpackage #zin #zinventory #zis #z$1.50. #zReflection #zGraphics #zuses
#z2,600 #zpackages #zof #zpaper #zeach #z year. #zProduction #zis #zconstant, #zand #zthe #zlead #ztime #zto
#zreceive #zan #zorder #zis #zone #zweek.
The #zreorder #zpoint #zis:
A) 25 #zpackages.
B) 50 #zpackages.
C) 100 #zpackages.
D) 203 #zpackages.
E) 225 #zpackages.
#z #z
Managerial #zAccounting: #zCreating #zValue #zin #za #zDynamic #zBusiness #zEnvironment,13th #zEdition #zby
#zRonald
Chapter 1-17#z
Appendix III #z
1) The #zEOQ #zmodel #zis #za #zmathematical #ztool #zfor #zdetermining #zthe #zorder #zquantity #zthat:
A) maximizes #zthe #zcosts #zof #zordering #zand #zholding #zinventory.
B) equals #zthe #zcosts #zof #zordering #zand #zholding #zinventory.
C) minimizes #zthe #zcosts #zof #zordering #zand #zholding All Chapters ✅
#z
inventory.
#z
D) has #zno #zeffect #zon #zthe #zcosts #zof #zordering #zand
#zholding #zinventory?
E) none #zof #zthese #zanswers #zare #zcorrect.
✅
Answers Included#z
2) Inventory#zdecisions #zinvolve #za #zdelicate #zbalance #zbetween #zwhich #zof #zthe #zfollowing
classes #zof #zcosts?
#z
A) Ordering #zcosts, #zadvertising #zcosts, #zand #zshipping #zcosts
B) Advertising #zcosts, #zholding #zcosts, #zand #zshortage #zcosts
C) Ordering #zcosts, #zholding #zcosts, #zand #zshortage #zcosts
D) Ordering #zcosts, #zshipping #zcosts, #zand #zshortage #zcosts
E) Shipping #zcosts, #zholding #zcosts, #zand #zshortage #zcosts
3) Which #zone #zof #zthe #zfollowing #zis #ztrue #zof #za #zjust-in-time #z(JIT) #zsystem?
A) JIT #zsystem #zuses #za #z“pull” #zapproach #zto #zcontrolling #zmanufacturing
B) Inventory#zof #zraw #zmaterials #zand #zparts #zare #zkept #zas #za #zbuffer
C) Inventory #zof #zpartially #zcompleted #zparts #zare #zkept #zas #za #zbuffer
D) Finished #zgoods #zare #zkept #zas #za #zbuffer
E) None #zof #zthe #zanswers #zare #zcorrect
4) Which #zone #zof #zthe #zfollowing #zis #ztrue #zof #zEconomic #zOrder #zQuantity #z(EOQ)?
A) The #zEOQ #zapproach #ztakes #zthe #zview #zthat #zsome #zinventory #zis #znecessary #zin
#zorder #zto #zoptimize #zthe #zorder #zquantity
B) Is #zcalculates #zas #zthe #zsquare #zroot #zof #zthe #zfollowing: #z(2 #z× #zannual #zrequirement #z×
#zcost #zper #zorder) #z÷ #zannual #zholding #zcost #zper #zunit
C) The #zgraphical #zapproach #zis #zone #zmethod #zof #zcalculating #zEOQ
D) A #zmathematical #ztool #zfor #zdetermining #zthe #zorder #zquantity#zthat #zminimizes #zthe
#zcost #zof #zordering #zand #zholding #zinventory
E) All #zof #zthe #zanswers #zare #zcorrect
,5) Which #zof #zthe #zfollowing #zis #za #zway #zthat #zJIT #zefficiencies #zare #zachieved?
A) Negotiating #zlong-term #zsupply #zagreements
B) Eliminating #zinspections
C) Reducing #zthe #znumber #zof #zvendors
D) Making #zless #zfrequent #zpayments
E) All #zof #zthe #zanswers #zare #zcorrect
6) Inventory #zholding #zcosts #ztypically #zinclude:
A) clerical #zcosts #zof #zpurchase-order #zpreparation.
B) costs #zof #zdeterioration, #ztheft, #zor #zspoilage.
C) costs #zassociated #zwith #zlost #zsales #zto #zcustomers.
D) forgone #zinterest #zon #zmoney #ztied #zup #zin #zinventory.
E) both #zcosts #zof #zdeterioration, #ztheft, #zor #zspoilage #zand #zforgone #zinterest #zon #zmoney
tied #zup #zin #zinventory.
#z
7) Inventory#zholding #zcosts #zwould #ztypically #zinclude #zall #zof #zthe #zfollowing #zexcept:
A) insurance.
B) theft.
C) transportation.
D) obsolescence.
E) warehouse #zrent.
8) Which #zof #zthe #zfollowing #zis #zclassified #zas #zan #zinventory #zshortage #zcost?
A) Purchase #zorder #zpreparation
B) Production #zdisruption
C) Lost #zsales #zand #zlost #zcustomers
D) Spoilage
E) Both #zproduction #zdisruption #zand #zlost #zsales #zand #zlost #zcustomers
9) At #zthe #zeconomic #zorder #zquantity:
A) total #zannual #zinventory #zcosts, #zholding #zcosts, #zand #zordering #zcosts #zare #zall #zminimized.
B) total #zannual #zinventory #zcosts #zand #zholding #zcosts #zare #zminimized.
C) total #zannual #zinventory #zcosts #zare #zminimized, #zand #zholding #zcosts #zequal #zordering #zcosts.
D) total #zannual #zinventory #zcosts #zare #zminimized, #zand #zholding #zcosts #zexceed #zordering #zcosts.
E) total #zannual #zinventory #zcosts #zare #zminimized, #zand #zordering #zcosts #zexceed #zholding #zcosts.
,10) Langdon Enterprises uses an economic order quantity model and has determined an optimal
order size of 2,200 units. Annual demand is 44,000 units, ordering costs are $60 per order,
and holding costs are $6 per unit. The company's annual holding costs total:
A) $13,200.
B) $14,400.
C) $485,200.
D) $265,200.
E) none of the answers is correct.
11) Langdon Enterprises uses an economic order quantity model and has determined an optimal
order size of 500 units. Annual demand is 10,000 units, ordering costs are $50 per order, and
holding costs are $4 per unit. The company's annual holding costs total:
A) $2,000.
B) $3,000.
C) $21,000.
D) $41,000.
E) none of the answers is correct.
12) Reflection Graphics uses a special purpose paper on 80% of its jobs. The paper is purchased
in 310-sheet packages at a cost of $310 per package. Management estimates that the cost of
placing and receiving a typical order is $36, and the annual cost of carrying a package in
inventory is $3.60. Reflection Graphics uses 4,700 packages of paper each year. Production
is constant, and the lead time to receive an order is two week.
The economic order quantity is approximately:
Note: Round your final answer to the nearest whole number.
A) 307 packages.
B) 4,018 packages.
C) 2,093 packages.
D) 1,636 packages.
E) 1,166 packages.
, 13) Reflection #zGraphics #zuses #za #zspecial #zpurpose #zpaper #zon #z80% #zof #zits #zjobs. #zThe #zpaper #zis
#zpurchased #zin #z100-sheet #zpackages #zat #za #zcost #zof #z$100 #zper #zpackage. #zManagement
#zestimates #zthat #zthe #zcost #zof #zplacing #zand #zreceiving #za #ztypical #zorder #zis #z$15, #zand #zthe
#zannual #zcost #zof #zcarrying #za #zpackage #zin #zinventory #zis #z$1.50. #zReflection #zGraphics #zuses
#z2,600 #zpackages #zof #zpaper #zeach #z year. #zProduction #zis #zconstant, #zand #zthe #zlead #ztime #zto
#zreceive #zan #zorder #zis #zone #zweek.
The #zeconomic #zorder #zquantity#zis #zapproximately:
A) 203 #zpackages.
B) 225 #zpackages.
C) 228 #zpackages.
D) 565 #zpackages.
E) 631 #zpackages.
14) Reflection #zGraphics #zuses #za #zspecial #zpurpose #zpaper #zon #z80% #zof #zits #zjobs. #zThe #zpaper #zis
#zpurchased #zin #z350-sheet #zpackages #zat #za #zcost #zof #z$350 #zper #zpackage. #zManagement
#zestimates #zthat #zthe #zcost #zof #zplacing #zand #zreceiving #za #ztypical #zorder #zis #z$40, #zand #zthe
#zannual #zcost #zof #zcarrying #za #zpackage #zin #zinventory #zis #z$4.00. #zReflection #zGraphics #zuses
#z5,100 #zpackages #zof #zpaper #zeach #z year. #zProduction #zis #zconstant, #zand #zthe #zlead #ztime #zto
#zreceive #zan #zorder #zis #zthree #zweeks.
Note: #zAssume #z52 #zweeks #zin #za #zyear. #zDo #znot #zround #zyour #zintermediate #zcalculations.
#zRound #zyour #zfinal #zanswer #zto #znearest #zwhole #zdollar #zamount.
The #zreorder #zpoint #zis:
A) 147 #zpackages.
B) 1,440 #zpackages.
C) 5,600 #zpackages.
D) 350 #zpackages.
E) 294 #zpackages.
15) Reflection #zGraphics #zuses #za #zspecial #zpurpose #zpaper #zon #z80% #zof #zits #zjobs. #zThe #zpaper #zis
#zpurchased #zin #z100-sheet #zpackages #zat #za #zcost #zof #z$100 #zper #zpackage. #zManagement
#zestimates #zthat #zthe #zcost #zof #zplacing #zand #zreceiving #za #ztypical #zorder #zis #z$15, #zand #zthe
#zannual #zcost #zof #zcarrying #za #zpackage #zin #zinventory #zis #z$1.50. #zReflection #zGraphics #zuses
#z2,600 #zpackages #zof #zpaper #zeach #z year. #zProduction #zis #zconstant, #zand #zthe #zlead #ztime #zto
#zreceive #zan #zorder #zis #zone #zweek.
The #zreorder #zpoint #zis:
A) 25 #zpackages.
B) 50 #zpackages.
C) 100 #zpackages.
D) 203 #zpackages.
E) 225 #zpackages.
