Table 13.8 an Operations Manager Has Narrowed Down the Search for a for a New

question 18

Multiple Choice

Table 13.8
An operations manager has narrowed down the search for a new plant for Tim! to three locations. Fixed and variable costs follow.

-Excel Products is planning a new warehouse to serve the Southeast. Locations A, B, and C are under consideration. Fixed and variable costs follow.
Which of the following statements is best?

• A) Location A is the best one if volumes are quite high.
• B) Location B is best over all volume levels.
• C) The total cost of location A, if the volume is 250,000 units, is over $8,000,000.
• D) The break-even quantity between A and B is more than 85,000 units but fewer than 200,000 units.

Comprehend the components and special considerations in determining merchandise inventory.

Learn how to calculate the cost of goods sold and ending inventory using the LIFO and FIFO inventory valuation methods.

Identify the internal controls necessary for accurate physical inventory counting.

Understand the effects of inventory valuation methods on financial statements and tax implications.