acc3002cw1oct2007 - UNIVERSITY OF TECHNOLOGY JAMAICA SCHOOL...

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UNIVERSITY OF TECHNOLOGY, JAMAICA SCHOOL OF BUSINESS ADMINISTRATION COURSE-WORK NO. 1 GROUP: EBBA4/BBA3/POM3 MODULE CODE: ACC3002 COURSE: INTRODUCTION TO COSTING DURATION: 2 HOURS DATE: October 19, 2007 INSTRUCTIONS : ANSWER ALL QUESTIONS. SECTION 1 – 60 MARKS) 1. You are given the following information: EOQ 800 units Annual demand 6400 units Unit cost $7.00 Carrying costs 15% per annum The ordering cost per order is (a) $1.05 (b) $6720 (c) $52.50 (d) cannot be determined (e) none of the above 2. You are given the following information: Annual demand 10000 units Unit cost $10 Carrying costs 10% Ordering cost per order $24.50 The total cost associated with the EOQ is (a) $10024.50 (b) $350 (c) 700 units (d) $700 (e) cannot be determined (f) none of the above 3. You are given the following information EOQ 4000 units Minimum Usage 300 units Minimum Lead Time 5 days Maximum Level 6 times the reorder level The maximum level is (a) 2500 units (b) 9000 units (c) 3000 units (d) cannot be determined from the above information (e) none of the above
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4. You are given the following information Opening Stock 1000 units Usage per day 100 units Reorder Level 400 units Delivery time 3 days Stock level at the end of the 8 th day 1000 units The reorder quantity is (a) 1000 units (b) 900 units (c) 700 units (d) 800 units (e) cannot be determined from the above information 5 You are given the following information Physical Stock balance 4 times the Free Stock Balance Quantities on outstanding purchase orders 900 units Quantities on outstanding requisitions 2700 units The Free Stock Balance is equal to: (a) 0 units (b) 2700 units (c) 2400 units (d) 600 units (e) none of the above 6. A company has a re-order level of 200 units, and an average daily demand of 20 units. If average lead time is 10 days, how many days’ sales can be covered if the shipment from the supplier is one day later than expected and demand is on average 5 units per day above average? (a) 200 days (b) 120 days (c) 10 days (d) 8 days (e) none of the above 7. The Perpetual Inventory System is: (a) where the stock levels are checked on a continuous basis (b) where stocks are always available to meet production demands
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This note was uploaded on 02/26/2012 for the course ECON 101 taught by Professor Adam during the Three '11 term at University of Technology, Sydney.

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acc3002cw1oct2007 - UNIVERSITY OF TECHNOLOGY JAMAICA SCHOOL...

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