Consider the Following Conditions for an Item Used in the Hess

question 172

Multiple Choice

Consider the following conditions for an item used in the Hess Company's manufacturing process: Which of the following statements best describes Hess's situation regarding inventory replenishment?

• A)No action is required,since a scheduled receipt is due to be delivered to Hess.
• B)To cover its backorders,Hess should order two lots of 50 units.
• C)Because it is incurring backorders,Hess should increase its reorder point.
• D)Hess should place an order for 50 units,since the inventory position is less than the reorder point.

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Definitions:

Federal Income Tax

A tax levied by the federal government on individuals' and corporations' yearly income.

Payroll Tax

Taxes imposed on employers and employees, typically calculated as a percentage of the salaries that employers pay their staff.

Benefits Principle

A tax principle stating that those who benefit from government services should pay in proportion to the amount they benefit.

Ability-To-Pay

A principle in taxation that suggests taxes should be levied according to the taxpayer's ability to bear the tax burden.