Safa traders is a wholesale business unit based in Salala. The company is dealing with disposable tableware in large quantities. The business has a separate stores department which maintains a full-fledged stores register which will be updated on a day to day basis with all the stock movements. At the end of the previous month, the company management has called for a strategic meeting to discuss the future plans to improve the performance of the business. One of the partner has raised his concern about the increasing total cost of the business and he suggested to use any appropriate Inventory control technique to reduce the overall cost of the company. The management accountant is considering to implement EOQ purchase in the business to reduce the overall cost of the company. Upon request, the stores department has provided with the following information to estimate the EOQ. Annual demand for the tableware is given as 5000 Units and the business has to spend OMR 20 per order in order to meet the cost of transportation, insurance and temporary storage. The holding cost per unit is given as 10 OMR per annum. Choose the EOQ of Safa traders from the following? O 141.42 120.42 O 70.17 70.71

Safa traders is a wholesale business unit based in Salala. The company is dealing with disposable tableware in large quantities. The business has a separate stores department which maintains a full-fledged stores register which will be updated on a day to day basis with all the stock movements. At the end of the previous month, the company management has called for a strategic meeting to discuss the future plans to improve the performance of the business. One of the partner has raised his concern about the increasing total cost of the business and he suggested to use any appropriate Inventory control technique to reduce the overall cost of the company. The management accountant is considering to implement EOQ purchase in the business to reduce the overall cost of the company. Upon request, the stores department has provided with the following information to estimate the EOQ. Annual demand for the tableware is given as 5000 Units and the business has to spend OMR 20 per order in order to meet the cost of transportation, insurance and temporary storage. The holding cost per unit is given as 10 OMR per annum. Choose the EOQ of Safa traders from the following? O 141.42 120.42 O 70.17 70.71

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 38P: Welcome Inns is a chain of motels serving business travelers in New Mexico and southwest Texas. The...

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