The General Chemical Company uses 150,000 gallons of hydrochloric acid per month. The cost of carrying the chemical in inventory is 50 cents per gallon per year, and the cost of ordering the chemical is $150 per order
The firm uses the chemical at a constant rate throughout the year. The chemical's economic order quantity is ________.
A) 32,863 gallons
B) 11,619 gallons
C) 9,487 gallons
D) 1,900 gallons
A
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Which of the following is included in the internal control procedure—documents?
A) Mandatory vacations will improve internal control. B) Separate the custody of assets from accounting. C) The invoices and orders must be pre-numbered. D) A company should purchase a fireproof vault to protect legal documents.
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