Which of the following statements regarding lot-sizing is TRUE?
A) EOQ principles should be followed whenever economical.
B) Too much concern with lot-sizing results in false accuracy.
C) Lot-for-lot cannot be modified for scrap allowance or process constraints.
D) The Wagner-Whitin algorithm simplifies lot size calculations.
E) All of the above are true.
B
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If the CAE concludes that management has accepted a level of risk that may be unacceptable to the organization, what should the CAE do?
a) Resign as the internal audit function has lost its independence. b) Discuss the matter with senior management and if not resolved communicate the matter to the audit committee. c) Accept management's decision as it is their responsibility to determine the risk response. d) Take the matter to the organizations external auditor.
An expression of the hourly labor pay cost per function or job classification that is expected to exist during the next accounting period is the definition of a
a. direct labor time standard. b. direct materials quantity standard. c. direct labor rate standard. d. variable overhead rate.