Given That Unit Item Cost = $30,annual Carrying Charge =

question 10

Multiple Choice

Given that unit item cost = $30,annual carrying charge = 15%,annual demand = 3,600 units,and ordering cost = $15 per order,the EOQ

• A) is 84.85 units.
• B) is 154.92 units.
• C) is 200 units.
• D) cannot be determined from the information given.

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Definitions:

Accrued Interest

Interest that has been earned but not yet received or recorded in the accounts.

Interest Payable

A liability account showing the amount of interest expense that has been incurred but not yet paid as of the balance sheet date.

Equity Method

An accounting technique used to record an investor's earnings in proportion to their ownership stake in a company.

Periodic Net Income

Periodic net income refers to the total earnings of a company, after accounting for all expenses and taxes, over a specific financial reporting period.