Lead Time for Cakes Is 2 Days with Daily Demand

question 115

Multiple Choice

Lead time for cakes is 2 days with daily demand of 10 cakes and a safety stock of ½ a day.Each container (kanban) holds 1 cake.What is the correct number of kanbans?

• A)4
• B)1
• C)5
• D)10
• E)25

Calculate the amount of goodwill using the entity method.

Calculate the amount of goodwill using the parent-company extension method.

Identify the consolidation approach that excludes Non-controlling Interest (NCI).

Locate the placement of NCI on the statement of financial position under IAS 27.

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Definitions:

Discount Period

The Discount Period refers to a specific timeframe during which a buyer can pay less than the full invoice amount as an incentive for early payment.

Credit Terms

Conditions under which credit is extended by a seller to a buyer, including payment period, discount for early payment, and late penalty.

Accounts Payable

Liabilities or amounts owed to creditors for goods and services received but not yet paid for.

Merchandise Inventory

The goods a company holds for the purpose of sale to customers.