Explanation

Economic order quantity is that quantity at which cost of holding and carrying inventory is minimum and equal. Economic order quantity is the ideal order quantity

a company should purchase for its inventory given a set cost of production, a certain demand rate, and other variables. This is done to minimize inventory holding costs and order-related costs.

Explanation

A key factor is defined as the factor in the activities of an undertaking which, at a particular point of time or over a period, will limit the volume of output.

Other variant terms are limiting factor, Principal Budget Factor & scarce factor.

Explanation

A Current Ratio of Less than One means Current Assets < Current Liabilities

Explanation

Income statement report gives a review on the profitability of a business

An income statement or profit and loss account is one of the financial statements of a company

and shows the company's revenues and expenses during a particular period.

It indicates how the revenues are transformed into the net income or net profit.

Explanation

Credit sale of $750

Terms 2/10, net/30

$50 is granted on June 16

= (750-50)x 0.98

= 700 x 0.98

= 686

Explanation

Consumer price index (CPI) calculate price of both goods and services

Explanation

Stock control through stock levels and EOQ is called perpetual inventory system.

Explanation

Asset accounts are not closed at the end of an accounting period

Explanation

Total Current Assets of the Company were Rs.150,000/= i.e 1.5:1

Current Liabilities were 100,0000/-

So, Net Current assets will be 1500000-1000000= 5,00,000/=

So, therefore, Current Assets are Rs.15,00,000/=

Explanation

Increase in sales = Rs. 60000 - Rs. 40000 = Rs. 20000
PV Ratio = Increase in Profit / Increase in sales
= 5000 / 20000 = 0.25