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Author Question: Due to unprecedented growth during the year, Flowers by Kelly decided to use some of its surplus ... (Read 57 times)

809779

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on: Mar 6, 2021

Question 1

Discuss considerations that should be fully taken into account when developing inventory related relevant costs for use in an economic order quantity (EOQ) model.

Question 2

Due to unprecedented growth during the year, Flowers by Kelly decided to use some of its surplus cash to increase the size of several inventory order quantities that had been previously determined using an EOQ model. 

Required:
Identify whether increasing the size of inventory orders will increase, decrease, or have no effect on each of the following items. 

________a.Average inventory 
________b.Cost of goods sold 
________c.Number of orders per year 
________d.Total annual carrying costs 
________e.Total annual carrying and ordering costs 
________f.Total annual ordering costs 
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by 809779 on Mar 6, 2021

kthug

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Reply #1 on: Mar 6, 2021
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809779

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Reply 2 on: Mar 6, 2021
Excellent

triiciiaa

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Reply 3 on: Yesterday
Wow, this really help

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