Which of the Following Is a Dynamic Lot-Sizing Technique That

question 15

Multiple Choice

Which of the following is a dynamic lot-sizing technique that adds ordering and inventory carrying cost for each trial lot size and divides by the number of units in each lot size, picking the lot size with the lowest unit cost?

• A) Economic order quantity
• B) Lot-for-lot
• C) Least total cost
• D) Least unit cost
• E) Inventory item averaging

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Definitions:

Company Tax Rate

The rate at which a company’s taxable income is taxed by the government, which varies by country and sometimes also by the type and size of the company.

Inventories

Goods owned with the intention to sell them through standard business activities, in the stage of being made for sale, or as parts or materials meant for consumption in production activities or while offering services.

Consolidation Worksheet

A tool used in the preparation of consolidated financial statements to combine the financial information of a parent company with its subsidiaries.

Subsidiary Entity

An entity that is controlled by another entity, the control often being evidenced through ownership of more than half of the voting rights or through other means of control.