Use the Following Data Set to Answer Questions 86-100 -Consider the Data on Inventory of Widgets Over a 10-Day

question 96

Multiple Choice

Use the following data set to answer questions 86-100. $$\begin{array}{l}\text { Inventory of Widgets Dver a 10-Day Period }\\\begin{array} { | l | l | l | l | l | l | l | } \hline \text { Day } & \begin{array} { l } \text { Supply } \\\text { Received }\end{array} & \begin{array} { l } \text { Beginning } \\\text { lnventory }\end{array} & \text { Demand } & \begin{array} { l } \text { Ending } \\\text { Inventory }\end{array} & \begin{array} { l } \text { Order } \\\text { Placed }\end{array} & \begin{array} { l } \text { Lead } \\\text { Time }\end{array} \\\hline 1 & & 30 & 8 & 22 & \text { NO } & \\\hline 2 & & 22 & 5 & 17 & \text { NO } & \\\hline 3 & & 17 & 6 & 11 & \text { YES } & 1 \\\hline 4 & & 11 & 8 & 3 & \text { NO } & \\\hline 5 & 20 & 23 & 7 & 16 & \text { NO } & \\\hline 6 & & 16 & 7 & 9 & \text { YES } & 1 \\\hline 7 & & 9 & 6 & 3 & \text { YES } & \\\hline 8 & 20 & 23 & 6 & 17 & \text { NO } & \\\hline 9 & & 17 & 5 & 12 & \text { YES } & 1 \\\hline 10 & & 12 & 7 & 5 & \text { NO } & \\\hline\end{array}\end{array}$$
-Consider the data on Inventory of Widgets Over a 10-Day Period.Any time that ending inventory falls to 15 or below,an order is placed for 20 units of the product.The lead time for delivery varies and is shown in the column under Lead Time.If the cost of holding inventory is $6 per unit per day,what are the total ordering costs during the 10-day period?

• A)$6
• B)$115
• C)$690
• D)$695

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Definitions:

Projected Benefit Obligation

Projected Benefit Obligation (PBO) is a measure of the estimated total amount a pension plan needs to cover future pension benefits owed to employees, based on expected future salary increases.

Plan Assets

The resources that a pension plan has accumulated to cover future obligations to participants.

Amortization of Prior Service Costs

The process of gradually writing off the initial costs of services received or obligations incurred in the past, over the service periods of the involved employees.

Pension Accounting and Reporting

The process of recording and communicating information regarding a company's pension obligations and related costs in its financial statements.