Figure 24-4 Buckner Manufacturing Purchases Components Produced by Cochran Company in the in the Manufacture

question 5

Multiple Choice

Figure 24-4
Buckner Manufacturing purchases components produced by Cochran Company in the manufacture of their main product. For the next year, Buckner expects to use a total of 30,000 parts. Buckner typically orders 500 units at a time. The cost of placing an order is £40, and the average annual cost of carrying one unit of inventory is £2.
-Refer to Figure 24-4. Buckner's total carrying cost is

• A)£1,000.
• B)£500.
• C)£2,400.
• D)£2,900.

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Definitions:

Extreme Values

Refers to the maximum and minimum values in a given data set, indicating the range's limits.

Range

The difference between the highest and lowest values in a data set, indicating its spread.

Coefficient of Variation

A metric that quantifies the spread of data points around the mean within a dataset, represented as a percentage of the mean itself.

Variance

A statistical measure of the dispersion of a set of data points in a data distribution, showing how each data point differs from the mean.