The General Chemical Company Uses 150,000 Gallons of Hydro Chloric

question 46

Multiple Choice

The General Chemical Company uses 150,000 gallons of hydro chloric acid per month. The cost of carrying the chemical in inventory is 50 cents per gallon per year, and the cost of ordering the chemical is $150 per order. The firm uses the chemical at a constant rate throughout the year. The chemical's economic order quantity is ________.

• A) 32,863 gallons
• B) 11,619 gallons
• C) 9,487 gallons
• D) 1,900 gallons

Analyze the effects of improperly performed contract substitutions and the legal recourse available.

Understand the legal consequences of failing to adhere to specified contract conditions or warranties.

Learn the different ways a business can raise capital through the assignment of accounts receivable.

Understand the principles governing contracts that are non-assignable due to their personal nature or quality expectations.

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Definitions:

Cost of Goods Manufactured

The total cost of all materials, labor, and manufacturing overhead used in producing finished goods over a specific period.

Flexible Budgeting

A budgeting process that adjusts for changes in the volume of activity, rather than remaining static.

Direct Labor

The wages and related benefits of employees who are directly involved in the production of goods or the delivery of services.

Direct Materials

Raw materials that are directly incorporated into a finished product and are easily traceable to specific goods or services.