× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
r
4
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
dxpayne dxpayne
wrote...
Posts: 930
Rep: 1 0
6 years ago
Party Animals orders 10,400 stuffed tigers per year, at $10 per tiger, FOB destination. Party Animals earns 12% on its cash investments. The purchase order lead time is 3 weeks. The following data are available:

Estimated ordering costs per purchase order    $10
Estimated insurance, materials handling, breakage, and so on, per year   $3
Actual ordering costs per order   $15

What is the cost of the prediction error?
A) $19.58
B) $23.12
C) $1,144.82
D) $1,167.85
E) $1,237.92
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
Read 170 times
1 Reply

Related Topics

Replies
wrote...
#1
6 years ago
B
Explanation:  B) EOQ = 
EOQ = 223
EOQ = 
EOQ = 273

$10 * 12% = $1.20
Carrying costs = $3 + $1.20 = $4.20

TRC =   +   = $699.55 + $468.30 =   $1,167.85

TRC =   +   = $571.43 + $573.30 =   $1,144.73
                            $23.12
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1313 People Browsing
 111 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 33
  
 6892
  
 266
Your Opinion
Which industry do you think artificial intelligence (AI) will impact the most?
Votes: 352
Previous poll results: Which is the best fuel for late night cramming?