Completion Statements Fill in the blank(s) to complete each statement. 1. Which

Question

Completion Statements

Fill in the blank(s) to complete each statement.

1.   Which six categories of costs pertaining to inventory are distinguished for management purposes?

_______________________________________

_______________________________________

______________________________________.

2.   Which two of the cost categories in the preceding answer are considered in the EOQ model? __ _____________________________________ and ___________________________________

3.   What do each of the letters in the EOQ model stand for?

D =

P =

         C =

4.   In purchasing materials or goods, ordering costs are equivalent to __ for a production run.

5.   A system of production that manufacturers each component in a production line as soon as, and only when, needed by the next step in the production line is called ______________________ ______________________________________.

6.   Traditional normal and standard costing record the journal entries in the same order as actual purchases and progress in production occurs, which is called __________________________ ________________.

7.   _________________________________ omits recording some of the journal entries relating to the stages from purchase of direct materials to the sale of finished goods; it then uses normal or standard costs to work backward to assign manufacturing costs to units produced and/or sold.

8.   A stage in the cycle, from purchase of direct materials to sale of finished goods, at which journal entries are recorded in the accounting system is called a ________________________________.

Explanation / Answer

Ans 1 Six type of inventory cost:

a) Purchase cost b) Inventory Holding cost and ordering Cost c) Cost of capital d) Processing Cost e) Cost of loss, shrinkage etc f) cost of logistics

Ans 2 1) Purchase cost and Inventory holding cost and storage cost.

Ans 3 D stands for demand of the year.

P=Purchase unit price

c=Cost to hold one inventory for the year

Ans 4 set up cost

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.