Costing - Study Mode

[#591] Balancing of all aspects of products or services and all departments in company are classified as
Correct Answer

(C) coordination

Explanation

Solution: Balancing of all aspects of products or services and all departments in company are classified as coordination. Coordination is the essence of management and an integral part of all the managerial functions.

[#592] Schedule of expected disbursements and cash receipts is considered as
Correct Answer

(B) cash budget

Explanation

Solution: Schedule of expected disbursements and cash receipts is considered as cash budget. A cash budget is an estimation of the cash inflows and outflows for a business over a specific period of time. This budget is used to assess whether the entity has sufficient cash to operate.

[#593] Reorder point is divided by number of sold units for per unit of time to calculate
Correct Answer

(C) purchase order lease time

Explanation

Solution: Reorder point is divided by number of sold units for per unit of time to calculate purchase order lease time.

[#594] Buying of goods or materials for production in a way that they are delivered directly on manufacturing facility of company is called
Correct Answer

(C) just in time purchasing

Explanation

Solution: Buying of goods or materials for production in a way that they are delivered directly on manufacturing facility of company is called just in time purchasing. Just-in-time purchasing (JIT purchasing) is a cost accounting purchasing strategy. You purchase goods so that they're delivered just as they're needed to meet customer demand.

[#595] Purchase order lead time is multiplied to number of units is sold per unit of time to calculate
Correct Answer

(D) reorder point

Explanation

Solution: Purchase order lead time is multiplied to number of units is sold per unit of time to calculate reorder point. The reorder point (ROP) is the level of inventory which triggers an action to replenish that particular inventory stock.