TEST BANK managerial accounting 9e by hilton AppendixIII

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... are necessary to reduce the probability of a stock shortage Answer: E LO: Type: RC 89 Hilton, Managerial Accounting, Seventh Edition EXERCISES Implementation of EOQ; JIT Pullman carries a part... total annual inventory costs if Pullman follows the EOQ policy C How much will the company save by adopting the EOQ model? D Briefly explain the philosophical difference between the EOQ model... result in lower holding costs for the firm? Why? LO: 1, Type: RC, A Answer: A The EOQ can be figured by taking the square root of: (2 x annual requirement x cost per order) ÷ annual holding cost per
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