Which of the following is correct for a firm that places orders for an item in amounts greater than the economic order quantity?
A) total cost of ordering and carrying has been maximized
B) the marginal carrying cost per item exceeds the marginal reduction in order cost
C) the marginal reduction in order cost exceeds the marginal carrying cost per item
D) total order costs exceed total carrying costs
Answer: B) the marginal carrying cost per item exceeds the marginal reduction in order cost
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A bank reconciliation should be prepared
A. whenever the bank refuses to lend the company money B. when an employee is suspected of fraud C. to explain any difference between the depositor's balance per books and the balance per bank D. by the person who is authorized to sign checks
Accrued revenue represents the receipt of cash before the revenue has been earned
Indicate whether the statement is true or false