(c) Concise Limited makes a component for one of the engines that it builds. It uses,...

90.2K

Verified Solution

Question

Accounting

(c) Concise Limited makes a component for one of the enginesthat it builds. It uses, on average, 2,000 of these components,steadily throughout the year. The component costs $16 per unit tomake and it costs an additional $320 to setup the productionprocess each time a batch of components is made. The holding costper unit is 10% of the unit production cost. The company makesthese components at a rate of 200 per week, and the factory is openfor 50 weeks per annum. Calculate the Economic Batch Quantity EBQ.(d) List and explain seven key purposes of a budgetingsystem. (e) Briefly explain any four (4) approaches tobudgeting

Answer & Explanation Solved by verified expert

3.8 Ratings (699 Votes)

Solution cTherefore on substituting the values in the formula EBQ isdetermined to be 1000 unitsSolution dPurposes of budgeting1 For planning the resource requirements by analysing how muchof it is to be acquired and how much would be consumed2 For the appropriate allocation of the resources3 It helps the organisation to manage the fundseffectively4 It helps the See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

(c) Concise Limited makes a component for one of the enginesthat it builds. It uses, on average, 2,000 of these components,steadily throughout the year. The component costs $16 per unit tomake and it costs an additional $320 to setup the productionprocess each time a batch of components is made. The holding costper unit is 10% of the unit production cost. The company makesthese components at a rate of 200 per week, and the factory is openfor 50 weeks per annum. Calculate the Economic Batch Quantity EBQ.(d) List and explain seven key purposes of a budgetingsystem. (e) Briefly explain any four (4) approaches tobudgeting