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I am undergoing an online course, and i am finding the accounting aspect difficult. Please i need help on this accounting question:


Assuming in your business, the cost per order for your product is N4,000 and its carrying cost is N400 Naira per unit per anum. Your business has a demand for 20,000 units per year. Calculate the;
1.Order size
2.Total orders required during a year
3.Total carrying cost
4. Total ordering cost for the year


Please help me out ooh. The question isn't what google can answer. I was first blind when i finished reading the question�. Heeeeeeeeeeelp!

morley411:
I am undergoing an online course, and i am finding the accounting aspect difficult. Please i need help on this accounting question:


Assuming in your business, the cost per order for your product is N4,000 and its carrying cost is N400 Naira per unit per anum. Your business has a demand for 20,000 units per year. Calculate the;
1.Order size
2.Total orders required during a year
3.Total carrying cost
4. Total ordering cost for the year


Please help me out ooh. The question isn't what google can answer. I was first blind when i finished reading the question�. Heeeeeeeeeeelp!

I have forgotten the formula.... Just get a production planning and control textbook and all will be solved

morley411:
I am undergoing an online course, and i am finding the accounting aspect difficult. Please i need help on this accounting question:


Assuming in your business, the cost per order for your product is N4,000 and its carrying cost is N400 Naira per unit per anum. Your business has a demand for 20,000 units per year. Calculate the;
1.Order size
2.Total orders required during a year
3.Total carrying cost
4. Total ordering cost for the year


Please help me out ooh. The question isn't what google can answer. I was first blind when i finished reading the question�. Heeeeeeeeeeelp!

The formula is √2DCo/Cc
Order size
√(2*20000*4000)/400
=632 approximately
Total order 20000/632=31.64
Total carrying cost 400*20000=8,000,000
Total ordering cost 4000* no of order you get in question 2 =4000*31.64=126560

Standardcosting:
The formula is 2DCo/Cc
Order size
(2*20000*4000)/400
=?
Total order 2000/4000
Total carrying cost 400*20000
Total ordering cost 4000* no of order you get in question 2

Thank you so much.

Is question two answer suppose to be 200/4000 or 20000/4000?

morley411:
Thank you so much.

Is question two suppose to be 200/4000 or 20000/4000?

I have corrected the mistake, seems the sleep made me write the wrong answer

Standardcosting:
I have corrected the mistake, seems the sleep made me write the wrong answer

Thank you. God bless you

morley411:
Thank you. God bless you

Amen