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4. Required production during a planning period will depend onthe: A)Beginning i

ID: 2457636 • Letter: 4

Question

4. Required production during a planning period will depend onthe:

           A)Beginning inventory of products

           B)Sales during the period

          C)Desired level of ending inventory

           D)All of the above

9. The economic order quantity:

          A)Determines the reorder point

           B)Is the lowest cost amount to order considering all costs?

           C)Determines the safety stock

15. Which of the following is a variable expense?

           A)A security deposit

          B)A phone bill

           C)A sales commission

16. Operating expenses can be separated into:

           A)Expenses that do not increase with sales

           B)Expenses that increase as sales increase

           C)Mortgages and lease expenses that increase with sales

           D)All the above

Explanation / Answer

4. D All of the above. 9. D all of the above. 15. C Sales commission.( security deposit - fixed cost; phone billand utility bill are mixed cost) 16. C.Mortgages and lease expenses that increase with sales. ( A is a fixed cost -not an operating expense; B goes tovariable cost -goes to manufacturing costs)

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