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

question 65

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 ordering costs are $15 per order,what are the total ordering costs during the 10-day period?

• A)$115
• B)$575
• C)$45
• D)$230

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Definitions:

Inventory

Inventory refers to the goods and materials that a business holds for the ultimate purpose of resale or production.

Continuing Franchise Fees

Regular payments made by franchisees to the franchisor for ongoing support and the right to continue operating under the franchisor's brand and system.

Franchise Agreement

A legal, binding contract between a franchisor and franchisee, outlining the terms and conditions for running a franchised business.

Cost Recovery Method

A revenue recognition method where no profit is recognized until the costs of the sold goods or services are fully recovered.