State why each of the following changes would affect (i) reorder point and (ii) EOQ, and state

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State why each of the following changes would affect (i) reorder point and (ii) EOQ, and state whether the effect would be an increase or a decrease in quantity.
a. Increase in demand for an inventory stock item
b. Decrease in the cost of capital to the firm holding the inventory
c. Increase in salaries in the purchasing and receiving departments Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...
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Accounting Information Systems

ISBN: 9780132871938

11th Edition

Authors: George H. Bodnar, William S. Hopwood

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