Ace Hardware's EOQ Is 100 Widgets,and It Maintains a 50

question 54

Multiple Choice

Ace Hardware's EOQ is 100 widgets,and it maintains a 50 unit safety stock.Which of the following is Ace's average inventory?

• A) 100 units
• B) 60 units
• C) 57.07 units
• D) 12.25 units
• E) 75 units

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Definitions:

Owner's Equity

Refers to the residual interest in the assets of a company after deducting liabilities, representing the ownership interest.

Property Plant and Equipment

Durable physical assets that are utilized in running a business and are not meant to be sold.

Intangible Assets

Non-physical assets that have value due to the rights or information they provide, such as trademarks, patents, and goodwill.

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operating expenses.