Briefly explain why the economic production lot size (ELS) is actually larger than the EOQ when there are noninstantaneous replenishments
What will be an ideal response?
The cycle inventory is less than Q/2, which reduces the annual holding cost of ordering Q units. Thus, a larger order quantity is justified.
Business
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The percent-of-sales method calculates bad debts expense based on a percentage of net cash sales
Indicate whether the statement is true or false
Business
On January 1, Ajax Corp
accepted a one-year note for $55,000 at 7% from one of its customers. When the note matured on December 31, the customer was unable to pay, and the company recorded the dishonor. The amount of the debit recorded on December 31 is ________. A) $51,150 B) $3,850 C) $55,000 D) $58,850
Business