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NEW QUESTION: 1
Which component provides insight into the effectiveness and results for areas of responsibility within the enterprise?
Response:
A. Revenue accounting and reporting
B. Profit center accounting
C. Profitability analysis
D. Results analysis
Answer: B
NEW QUESTION: 2
What is the number of production runs per year of computer chairs that would minimize the sum of carrying and setup costs for RCF for the coming year?
A. 0
B. 1
C. 2
D. 3
Answer: A
Explanation:
The EOQ minimizes the sum of carrying and setup costs. The EOQ is the amount at which carrying costs are equal to setup costs. Thus, plugging the data into the EOQ formula results in the following:
Thus, if each lot consists of 1.000 units, five production runs per year are needed to meet the 5.000-unit demand. At this level, setup costs will total US $5,000 (5 * $1.000) Carrying costs will also equal US $5,000 ($10 per unit carrying cost * average inventory of 500 units). Accordingly, total costs are minimized at US$10,000.
NEW QUESTION: 3
A customer wants to define a chart of depreciation. How do you recommend setting up depreciation areas?
Please choose the correct answer.
Response:
A. Based on the aims of internal or external reporting
B. Based on relevant currencies
C. Based on the relevant chart of accounts
D. Based on company codes
Answer: A