BDE Corp Sells 100 widgets per week (5,000 widgets per year/50 weeks)
Re-order point = Safety Stock + (Lead Time x Sales During Week)
Re-order Point = 1,000 + (4 x 100) = 1,400 widgets
BDE Corp will manufacture additional widgets when inventory falls to 1,400
WAAC= (9.4% x 55%) + (7.8% x 20%) + (4.2% x 25%)
A higher quick ratio means that the company has a greater ability to pay off current liabilities in the near term.
Quick Ratio = (Cash and Cash Equivalents + Short Term Marketable Securities + Net Receivables) / Current Liabilities.
Step 1 – calculate interest paid = (20,000 x 8% x (6/12)) = 800
Note: 6/12 is used because payments are made semiannually
Step 2 – Calculate available funds = (20,000 – 100 -75) = 19,850
Step 3 = Step 1/Step2 = 800/19,850 = 4.03%
Step 4 = Step 3 times payments made during year = %4.03 x 2 = 8.06%
All other options would encourage a business to raise the average amount of inventory held on hand. A corporation would be encouraged to decrease the amount of inventory retained in storage by the expense of carrying inventory.
True is the right response. A method of product costing known as process costing averages costs and applies them to a large number of homogeneous goods in the five steps that follow:
A. Explain the flow of physical units in brief.
B. Compute the output for the "equivalents unit"
C. Add up all of the expenses that need to be reported.
D. Using the overall expenses and equivalent units, determine the average unit costs.
E. To the units that have been completed and the units that are still in the ending work-in-process inventory, apply the average costs.
The enterprise rise management framework's governance and culture component identifies challenges that affect the organization's tone as well as the culture, establishing and operating structure, and dedication to core values.
