"Calculate EOQ (approx) from the following details:
Annual Consumption: 24000 units
Ordering cost: Rs 10 per order
Purchase price: Rs 100 per unit
Carrying cost: 5%"
A. 310
B. 400
C. 290
D. 300
Answer: Option A
Join The Discussion
Comments ( 4 )
Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
Plz explanation sir
EOQ= Root over of [ (2 x Annual Consumption x Ordering Cost Per Order) / Carrying Cost Per Unit]
Here, Annual Consumption = 24000 Units, Purchase Price= Rs. 100 Per unit, Ordering Cost Per Unit= (100 x 5%)= Rs. 5
EOQ= Root over of [ (2 x 24000 x 10) / 5]
I like the this site for exam
under root of 2*24000*10/100*.05=310(approx)