Your cousin's business is up and running. She is meeting inventory management issues and wants to solve
Fantastic news! We've Found the answer you've been seeking!
Question:
(a) Calculate the total annual carrying costs and the restocking costs.
(b) Explain in few sentences why this business does not follow an economically advisable strategy. (3 marks) Your cousin places an order for 540 units of metal bar at a unit price of $62.00. The supplier offers terms of 1/10, net 30.
(c) Indicate how much time can you wait to pay before the account is overdue. If you take the full period, determine how much you will have to remit.
(d) Identify the discount being offered and the period left for payment to get the discount. If you do take the discount, determine how much you will have to remit.
Related Book For
Advanced Financial Accounting
ISBN: 978-0137030385
6th edition
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
Posted Date: