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What does the EOQ formula tell us What assumption is made about the usage rate for inventory?
Wiki User
∙ 14y ago
The EOQ or economic order point tells us at what size order point we will minimize the overall inventory costs to the firm, with specific attention to inventory ordering costs and inventory carrying costs. It does not directly tell us the average size of inventory on hand and we must determine this as a separate calculation. It is generally assumed, however, that inventory will be used up at a constant rate over time, going from the order size to zero and then back again. Thus, average inventory is half the order size.
Wiki User
∙ 14y ago
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How do you use assumption in a sentence?
When he found the "Dear John" letter and the closet empty, he made the assumption his girl friend had left him.
What is the definition of reinvestment assumption?
The definition of reinvestment assumption is an assumption made concerning the rate of return that can be earned on the cash flows generated by capital budgeting projects. The cash flow can be interest, earnings, dividends, or rent.
The computer has made the periodic inventory system more popular and easier to apply?
true
You were little late on your payment now they are going to garnish your wages how can you stop?
Doubt you will be able to stop it now. If you were late, once then there is the assumption you will be late again, and garnishment gaurantees the payment is made and on time. Sorry, contact the company you owe and talk with them, that will be your only hope I think.
Formula of rate of commission?
Commission divided by sale = rate of commission.For example:Last week Don Felt made a commission of $325.80 on $2715 sales. Find his rate of commission.S325.80/2715=12%
Which accounting term best describes assumption made in applying the four inventory methods?
Cost Flow Assumption
Is the formula for cost of sales opening stock-closing purchases?
This cost of sales as expressed in a formula is as follows; Opening inventory + inventory purchases and expenses - ending inventory = cost of sales, this is also known as cost of goods sold. This is different to the value of the sales made i.e money recieved for the product at point of sale
What is periodic inventory?
The system of inventory where updates are made on a periodic basis is a periodic inventory. In this type of inventory, there is no effort made to keep the records of the cost of goods sold or the inventory up-to-date.
Write short notes on inventory control?
Inventory control refers to the process of systematic control/regulation of purchases made, storage and usage of material/goods in a way to maintain uninterrupted flow of production supply as per market trends and demand and avoid excessive investment in stock holdings at the same time.
Under which circumstances would adjustments to inventory levels be made?
Adjustments to inventory levels are made when new inventories are bought.
What is the impact of ERP on inventory management?
This is a great tool to use to manage your inventory. It has made managing inventory easy to track and to reorder.
What is the impact based on Inventory turnover?
Inventory turnover is the standard at which product inventory is acquired or made and further sold within a year. An assessment of all inventory-related business factors will have an impact on inventory turnover.
How do you use inventory in a sentence?
Eliza took inventory of the number of banners made for the school dance.
How do you use assumption in a sentence?
When he found the "Dear John" letter and the closet empty, he made the assumption his girl friend had left him.
How do you make a sentence with assumption?
To accept something without proof is to make an assumption. An example of a sentence using the word assumption would be: "She wished she hadn't made the assumption that the trip would be short; now all she wanted was to go home."
what assumption is made about the 6 fishermen aboard the AG/?
they are dead
What assumption is made about the fossil record?
Actually, the only assumption made is the assumption that the world was not created purposefully with the intention of deceiving scientists into thinking common descent is true.
