Get premium membership and access questions with answers, video lessons as well as revision papers.
1. Replenishment is instantaneous (Q). There is no lead time. Lead time is the time taken between ordering and delivery.
2. No safety stock.
3. Demand is known in advance and it is constant.
4. Purchasing cost and cost per order are constant i.e. there are affected by factors like discount.
5. Stock is replaced in equal batches.
6. Cost per order is constant irrespective of quality.
7. Stock holding / carrying cost is a function of average inventory.
8. No stock out cost.
Wilfykil answered the question on April 17, 2019 at 07:13
- Give objectives of Stock Control.(Solved)
Give objectives of Stock Control.
Date posted: April 17, 2019. Answers (1)
- Explain Average Weighted Cost Average as a method of Valuing Material Issues(Solved)
Explain Average Weighted Cost Average as a method of Valuing Material Issues
Date posted: April 17, 2019. Answers (1)
- Explain Last In, First Out (LIFO) as a method of Valuing Material Issues(Solved)
Explain Last In, First Out (LIFO) as a method of Valuing Material Issues
Date posted: April 17, 2019. Answers (1)
- Explain First In First Out (FIFO) as a method of Valuing Material Issues(Solved)
Explain First In First Out (FIFO) as a method of Valuing Material Issues
Date posted: April 17, 2019. Answers (1)
- Define the term Perpetual inventory(Solved)
Define the term Perpetual inventory
Date posted: April 17, 2019. Answers (1)
- Explain Just-in-time (JIT) systems(Solved)
Explain Just-in-time (JIT) systems
Date posted: April 17, 2019. Answers (1)
- Discuss on the systems of Stock Taking(Solved)
Discuss on the systems of Stock Taking
Date posted: April 17, 2019. Answers (1)
- Define material Coding and its' purposes(Solved)
Define material Coding and its' purposes
Date posted: April 17, 2019. Answers (1)
- Name and explain types of Stores(Solved)
Name and explain types of Stores
Date posted: April 17, 2019. Answers (1)
- List the features of Effective and Good Store keeping(Solved)
List the features of Effective and Good Store keeping
Date posted: April 17, 2019. Answers (1)
- Discuss Purchasing procedure as an aspect of material control(Solved)
Discuss Purchasing procedure as an aspect of material control
Date posted: April 17, 2019. Answers (1)
- What does material Control mean in cost accounting?(Solved)
What does material Control mean in cost accounting?
Date posted: April 17, 2019. Answers (1)
- The production manager of Kemu ltd Company, is concerned abut the apparent fluctuation in efficiency and wants to determine how labour costs (in Sh.) are...(Solved)
The production manager of Kemu ltd Company, is concerned abut the apparent fluctuation in efficiency and wants to determine how labour costs (in Sh.) are related to volume. The following data presents results of the 12 most recent weeks.
Required:
Estimate the cost function using:
a) The high low method
b) Regression analysis
Assume that the Company intends to produce 45 units, 34 units next period
Estimate the labour cost to be incurred.
c) Assume that the company (in illustration 2.1) intends to spend Sh.400 on labour cost next period. Compute the number of units that the company may produce.
Date posted: April 17, 2019. Answers (1)
- Based on performance, you have been provided with the following information regarding ABC Ltd for the year ended 31 December 2004 :(Solved)
Based on performance, you have been provided with the following information regarding ABC Ltd for the year ended 31 December 2004 :
Required:
Develop a total cost function based on the above data using the high-low method.
Date posted: April 17, 2019. Answers (1)
- What are the advantages and disadvantages of cost estimation?(Solved)
What are the advantages and disadvantages of cost estimation?
Date posted: April 17, 2019. Answers (1)
- Discuss the three types of overheads(Solved)
Discuss the three types of overheads
Date posted: April 17, 2019. Answers (1)
- Kemu ltd manufacturing company provides to you the following information for the month of October 2014.(Solved)
Kemu ltd manufacturing company provides to you the following information for the month of October 2014.
REQUIRED
1. Prepare a production cost statement
2. Prepare a profit statement.
Date posted: April 17, 2019. Answers (1)
- Give the importance of cost classification(Solved)
Give the importance of cost classification
Date posted: April 17, 2019. Answers (1)
- What is the role of Cost Accounting in business management?(Solved)
What is the role of Cost Accounting in business management?
Date posted: April 17, 2019. Answers (1)
- What is the role of a cost accounting department in an organization?(Solved)
What is the role of a cost accounting department in an organization?
Date posted: April 17, 2019. Answers (1)