Which of the following expenses associated with a project should NOT be included in a capital
budgeting analysis?
A) reengineering of a production line associated with a new project
B) additional allocated fixed overhead from corporate headquarters
C) additional maintenance expenses associated with new equipment
D) training sales staff on a new product
B
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Considered to be the first theory of international trade, the principal assertion of mercantilism is that:
A. countries differ in their ability to produce goods efficiently. B. gold and silver are the mainstays of a country's wealth and essential to vigorous commerce. C. countries should specialize in the production of goods for which they have an absolute advantage. D. differences in labor productivity between nations underlie the notion of comparative advantage. E. resources can move freely from the production of one good to another within a nation.
What is their reorder point if they order at twice their EOQ?
Kushie's Coffee in Bangalore is a quaint establishment nestled near MG Road in the central business district. It serves coffee and fruit cake to a clientele that has been enjoying these products for over fifty years. The demand for coffee beans is 6600 cases per year (each case has 24 ten-pound bags). It would be disastrous for them to run out of coffee, so they keep a safety stock of 30 cases. The cases cost $4800 and it costs $5 per case to order coffee. As coffee is a perishable product, the holding cost is fairly high at $40/case/year. The lead time to receive an order is seven days. Kushie's is open 300 days a year. A) 46 cases B) 92 cases C) 184 cases D) 368 cases