Sarah's Computer City Sells 5,000 Boxes of CD- RW Compact

question 63

Multiple Choice

Sarah's Computer City sells 5,000 boxes of CD- RW compact discs per year.She determined that she pays $50 to process an order for discs.Her purchase price is $6 for each box of discs and she has determined that storage costs for one year are 25 percent of the purchase price.Sarah's vendor said that if she purchased 1,000 boxes at a time,she would receive a 10 percent discount.The total cost formula is TC = DP + ^QIP + ^DS.What is Sarah's annual ordering cost if she does not take
2 Q
Advantage of the discount?

• A)$578
• B)$250
• C)$675
• D)$433

Recognize the role of unrelated business diversification within a corporation.

Grasp the concept and emergence of virtual organizations.

Understand the relationship between organizational structure and business strategy.

Describe the technologies impacting organizational structure as identified by prominent researchers.

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Definitions:

NSF Check

A cheque that cannot be processed because the writer's account lacks sufficient funds, standing for "Non-Sufficient Funds."

Debit Memorandum

A document or entry that records an adjustment or reduction in expenses payable to a vendor or an increase in inventory cost.

Adjusting Entries

Journal entries made in accounting records at the end of an accounting period to allocate income and expenditure to the correct periods.

NSF Check

A check that cannot be processed because the account on which it is drawn does not have sufficient funds.