10 Unrecorded Inventory - 10 Unrecorded Inventory Started:...

Info iconThis preview shows pages 1–15. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 10 Unrecorded Inventory Started: July 3, 2010 5:39 PM Submitted: July 3, 2010 5:50 PM Time spent: 00:11:42 Total score: 207.144/236 = 87.7729% 1-12 Costs 1. Sunk cost ID (no calc) (CMA/CFM examination) A sunk cost is a cost Stud ent Res pons e Valu e Corr ect Ans wer Feed back A. com mon to all alter nativ es in ques tion and not clearl y or pract ically alloc able to any of the alter nativ 2. MorMac relevant costs example problem MorMac inventory varies during the year. During a high activity month of 160 orders, salary of the receiving clerk in the warehouse was $2,400. During a low activity month of 100 orders, it was $2,000. What is the relevant cost and by what percentage did it change? Respectively nearest Stud ent Resp onse Valu e Corr ect Ans wer Feed back A. 60 and 60% B. 20% and $400 C. 3. Irrelevant cost (no calc) (CMA/CFM modified) Which one of the following items is irrelevant for a company attempting to minimize the cost of a stockout? Stud ent Resp onse Valu e Corr ect Ans wer Feed back A. Stora ge cost of inven tory B. Prob ability of being out of stock 4. Not a holding cost (CMA/CFM modified) Which one of the following items is not included in the annual holding costs of inventory? Stud ent Res pons e Valu e Corr ect Ans wer Feed back A. Insur ance on inven tory B. Taxe s on inven tory 5. Terminology Match the term with its correct definition in the drop-down box. Statement Response Value Correct Match Expected opportunity cost of a stockout Amount of profit forgone and the probability of its occurrence 14.28% Amount of profit forgone and the probability of its occurrence Total cost of inventory control Sum of order cost per order and number of orders plus holding costs per item and average balance 14.28% Sum of order cost per order and number of orders plus holding costs per item and average balance 6. Thurston per-order cost with inflation Thurston Company is a regional distributor of automobile window glass. With the introduction of new hybrid models and the expected high level of consumer demand, management recognizes a need to determine the total inventory cost associated with maintaining an optimal supply of replacement windshields. Thurston is expecting a daily demand for 36 windshields. The purchase price of each windshield is $50. Historical ordering costs incurred in the purchasing department for placing and processing orders are as follows: Year Orders Placed Total 20x7 20 $12,300 20x8 55 $12,475 20x9 100 $12,700 The working capital manager expects ordering costs to increase 16 percent over the cost suggested by the values in the table. 7. Thurston per order cost inflation (table) Thurston Company is a regional distributor of automobile window glass. With the introduction Thurston Company is a regional distributor of automobile window glass....
View Full Document

Page1 / 63

10 Unrecorded Inventory - 10 Unrecorded Inventory Started:...

This preview shows document pages 1 - 15. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online