The following information relates to the CCC COMPANY:
Units required per year
30,000
Cost of placing an order
P400
Unit carrying cost per year
P600
What is the EOQ (units)?Answer:________ units (do not provide any space in writing
the figure)
These are the assumptions of EOQ Model, except:
Question 30 options:
Re-order point is considered.
Projected sales can be made perfectly.
Demand is evenly allocated throughout the period
Quantity discount is totally ignored.
Which of the following are the costs of maintaining inventory?
1. Carrying costs
2. Ordering costs
3. Stock out costs
4. Excess costs
ITEMS 1, 2, and 3
This allows for uncertainty of estimates used in model and possibility of non-uniform
usage. SAFETY STOCK
Statement 1. In assigning of receivables, lender advances money to borrower up to
some predetermined percentage of accounts receivable and then collects directly
from customer account.
Statement 2. In pledging of receivables, bank or other lender makes loan of some
percentage of value of receivables but does not take possession of them.
Statement 3. In factoring of receivables, lender buys accounts receivables outright
from borrower at discount from face value and assumes burden of collecting
receivables.
Question 1 options:
Only one statement one is true
All statements are false
Only two statements are true
All statements are true
This indicates the effectiveness of the inventory management practices of the firm.
Inventory turnover
Assume the data of LAKERS COMPANY:
Annual demand, 240,000 units; cost price per unit: P2; Inventory carrying costs:
20% of average inventory level; and fixed cost of ordering: P30 per order.
What is the total carrying costs of maintaining the inventory? 1,200
Assume the data of LAKERS COMPANY:
Annual demand, 240,000 units; cost price per unit: P2; Inventory carrying costs:
20% of average inventory level; and fixed cost of ordering: P30 per order.
If LAKERS COMPANY allows 5-day supply as lead time to order an inventory stock,
what should be the reorder point? 3,288 units
Statement 1. In liberal policy, sales increases and as a result, profit and bad debts
also increases and hence the firm faces the problem of liquidity.
Statement 2. In Stringent policy, sales decreases and as a result, profit and bad
debts also decreases and hence the firm faces problem of profitability.
The following are the methods of financing the accounts receivable, except:
Discounting
The firm is very selective in extending credit
Question 2 options:
Liberal Policy
Stringent Policy
Lenient Policy
Loose Policy
The following information relates to the DDD COMPANY:
Units required per year
30,000
Cost of placing an order
P400
Unit carrying cost per year
P600
What is the total inventory costs based on the EOQ?
Answer: P ________ (do not provide any space in writing the amount)
-
120,000
Statement 1. Carrying costs increase with increases in average inventory levels and
therefore argue in favor of low levels of inventory in order to hold these costs down.
Statement 2. Ordering costs decrease with increases in average inventory levels and
therefore firm wants to carry high levels of inventory so that it does not have to
reorder inventory as often as it would if it carried low levels of inventory.
BOTH STATEMENTS ARE TRUE
BBB COMPANY requires 40,000 units of Product Q for the year. The units will be
sold evenly during the year. It costs P61.25 to place an order. It costs P10 to carry a
unit in inventory for the year. What is the total inventory costs based on the EOQ?
7000
A costs that pertains to storage, handling, loss in value due to obsolescence and
physical deterioration, taxes, insurance, financing
Carrying costs
This indicates the effectiveness of the inventory management practices of the firm.
INVENTORY TURNOVER
The receivables merely serve as collateral in the event of default BOTH PLEDGING
AND ASSIGNING
Which of the following are the inventory control systems?
1. JIT System
2. 3 Bin System
3. XYZ System
4. Outsourcing System
5. Computerize Inventory
ALL OF THE ITEMS EXCEPT 3
This indicates the effectiveness of the inventory management practices of the firm.
- INVENTORY TURNOVER
A costs that pertains to storage, handling, loss in value due to obsolescence and
physical deterioration, taxes, insurance, financing
Question 7 options:
Ordering costs
Carrying costs
Purchase costs
Stockout costs
Inventory costs
Inventory maintenance costs includes the following, except:
Question 8 options:
Ordering cost
Stock out cost
Cost of capital
Carrying cost
These types of inventory control systems tract inventory using physical inventory
counts.
Periodic Inventory System
AAA COMPANY requires 40,000 units of Product Q for the year. The units will be
sold evenly during the year. It costs P61.25 to place an order. It costs P10 to carry a
unit in inventory for the year. What is the EOQ (in units)?
Answer:_______ units (do not provide any space in writing the amount/figure)
700
The following information relates to the CCC COMPANY:
Units required per year
30,000
Cost of placing an order
P400
Unit carrying cost per year
P600
What is the EOQ (units)?
Answer:________ units (do not provide any space in writing the
figure)
200
Assume the data of LAKERS COMPANY:
Annual demand, 240,000 units; cost price per unit: P2; Inventory
carrying costs: 20% of average inventory level; and fixed cost of
ordering: P30 per order.
What is the total carrying costs of maintaining the inventory?
Question 18 options:
P1,200
Assume the data of LAKERS COMPANY:
Annual demand, 240,000 units; cost price per unit: P2; Inventory
carrying costs: 20% of average inventory level; and fixed cost of
ordering: P30 per order.
If LAKERS COMPANY maintain a safety stocks of 800 units and
allows 5-day supply as lead time to order an inventory stock, what
should be the reorder point?
Question 21 options:
4,088 units
7,375 units
4,133 units
7,467 units
Assume the data of LAKERS COMPANY:
Annual demand, 240,000 units; cost price per unit: P2; Inventory
carrying costs: 20% of average inventory level; and fixed cost of
ordering: P30 per order.
If LAKERS COMPANY allows 5-day supply as lead time to order an
inventory stock, what should be the reorder point?
Question 24 options:
3,288 units\
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