Which of the following is NOT true regarding period order quantity method (POQ) of lot sizing?
A) POQ is better suited to lumpy demand than EOQ.
B) The order quantity is constant.
C) POQ is derived directly from the EOQ.
D) The time interval of inventory coverage is constant.
E) POQ and EOQ will try to order the same number of times per year.
B
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Shutters Company adopted a defined benefit pension plan on January 1 . 2014 . Shutters amortizes the prior service cost over 1 . years and funds prior service cost by making equal payments to the fund trustee at the end of each of the first ten years. The service cost is fully funded at the end of each year. The following data are available for 2014: Service cost
.......................................... $440,000 Prior service cost: Amortized ........................................... 166,800 Funded .............................................. 228,800 If interest cost for 2014 is equal to the return on plan assets, then Shutters's prepaid pension cost at December 31 . 2014, is a. $228,800. b. $166,800. c. $62,000. d. $0