The Period Order Quantity Is Equal To

question 4

Multiple Choice

The period order quantity is equal to:

• A) Annual demand divided by EOQ.
• B) EOQ divided by average period demand.
• C) The carrying cost up to but not exceeding the ordering cost.
• D) The sum of the carrying costs divided by cost per unit.
• E) The part period cost times average inventory.

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Definitions:

Direct Labor Costs

The wages and benefits paid to workers who are directly involved in the manufacturing of products.

Cost Of Goods Manufactured

The total production cost of the goods completed and transferred out of the work-in-process inventory during a specific period.

Predetermined Overhead Rate

A rate calculated before the fiscal period begins, used to allocate projected overhead costs to products or job orders.

Direct Labor Cost

The total expense of employing workers to produce a product or provide a service, excluding indirect labor costs.