
1.
To compute: The optimum order quantity using EOQ model.
2.
a.
To compute: The number of order per year, and b. The annual relevant total cost of ordering and carrying inventory.
b.
To compute: The annual relevant total cost of ordering and carrying inventory.
3.
To compute: The optimum order quantity using EOQ model, the annual relevant total cost of ordering and carrying inventory.
4.
To explain: The cost impact on the company of excluding opportunity cost of carrying inventory when making EOQ decisions. Explain the reason of excluding the opportunity cost of carrying inventory when evaluating manager performance and also specify method to company to encourage manger to make decision more congruent with the goal of reducing total inventory cost.

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Chapter 20 Solutions
Cost Accounting (15th Edition)
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