Pop Quiz Costing 3

We will accept the discount offer if the cost more than the saving

• True

• False

Choose the effect/risk of overstocking.

• Lost contribution from lost sales

• Loss of future sales due to disgruntled customers

• Loss of customer goodwill

• Risk of obsolescence

Which of the following NOT the objective of material controlling?

• Increase in profit

• Reduction in cost

• Savings in material

• None of the choices

Economic order quantity (EOQ) is the maximum quantity of units a company should purchase to meet demand while minimizing inventory costs such as holding costs, shortage costs, and order costs.

• True

• False

The following are the example of normal loss situation, EXCEPT

• Loss by evaporation

• Loss due to loading and unloading

• Loss due to breakages when buying in bulk

• Fire, accident, flood