Answer the following question(s)using the information below:
The following information has been gathered for Product A:

-The total annual relevant cost equation, TRC, includes all of the following inputs EXCEPT
A)ordering costs per purchase order.
B)demand in units.
C)reorder point.
D)carrying cost per unit.
E)EOQ.

Question

Answer the following question(s)using the information below:
The following information has been gathered for Product A:
 
-The total annual relevant cost equation, TRC, includes all of the following inputs EXCEPT
A)ordering costs per purchase order. 
B)demand in units. 
C)reorder point. 
D)carrying cost per unit. 
E)EOQ.

Quizplus · Accepted Answer

The given information does not provide any data related to the reorder point, so it cannot be included in the total annual relevant cost equation, TRC. All of the other inputs mentioned (ordering costs per purchase order, demand in units, carrying cost per unit, and EOQ) are relevant cost drivers and can be used to calculate TRC.

Answer the Following Question(s)using the Information Below