Continuing with the Information About the City Pool Chemical Testing

question 73

Essay

Continuing with the information about the city pool chemical testing in another problem,the city could make this reagent at the rate of 1/4 gallon per day,at a cost of $500 per gallon.The setup cost is $125.Using a 7-day week,the daily demand,d,is 1/21 = 0.0477.Compare using the EOQ and the ELS systems.What course of action do you recommend?

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Definitions:

Accounting Method

The rules and procedures that a company follows in reporting its financial transactions, including how it records income and expenses.

Income Statement

A document detailing a firm's earnings, outgoings, and profit within a designated timeframe.

Continuing Operations

Parts of a business expected to continue for the foreseeable future, exclusive of any segments that may be sold off or discontinued.

Audit

A systematic examination of books, accounts, documents, and vouchers of an organization to ascertain how far the financial statements present a true and fair view of the concern.