Question

Ques! Choose the correct answer :-
1. The advantages of accounting for businessmen is : 1 assessment of tax, for
economic stability, for development of country, to control price |
1 The branches of accounting are : Financial accounts, cost accounts,
management accounting, all of above
3. Following is not qualitative characteristics of accounting information :
| rebiability, simplicity, relevance, understandability
That person to whom we sold goods on credit are called : | debtor,
creditors, manufacturers, none of above 1
5 Concession allowed by businessman to customers is called : | commissior,
discount, brokerage, all of above 1​

Answer 1

Answer:

The firm has been offered a quantity discount of 5% by the supplier on the purchase of

component, if the order size is 6,000 units at a time.

You are required to compute:

(i) Economic Order Quantity (EOQ)

(ii) Re-order Level and advise whether the discount offer be accepted by the firm or not.