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Economic order quantity |
The amount of purchases which should be made at any one time to minimize the total costs of stock |
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Efficiency ratio |
Actual production in standard hours divided by actual number of hours worked. The result is expressed as a percentage |
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Equivalent units |
Partly completed units expressed as equivalent to fully completed units. Therefore 5,000 units are half or 50% complete is equivalent to 2,500 fully completed units. |
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Expected standard |
A standard which can be attained and is based on prevailing conditions and circumstances of the organization. |
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