GFOA Exam CPFO Topic 5 Question 65 Discussion

Actual exam question for GFOA's CPFO exam

Question #: 65
Topic #: 5

[All CPFO Questions]

The city of Mudville uses 1600 oil filters annually. The cost of placing an order is $5.00. The unit cost is $3.50. The carrying cost is 20 percent, and the carrying cost per unit is &0.70(0.20x$3.50). What is the economic order quantity?

A150 oil filters

B130 oil filters

C155 oil filters

DNone of these

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Suggested Answer: A

by Louisa at Feb 07, 2023, 03:24 AM

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Leslie

Wait, what? Oil filters? Economic order quantity? I thought this was a test on plumbing, not accounting! Time to give up and become a professional cat herder instead.

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Rebbeca

10 days ago

Ha, this question is like a secret code that only the accountants know how to crack! Lucky for me, I've been studying hard. Let's see, the economic order quantity is definitely 155 oil filters. Time to move on to the next question and wow the examiners with my mad math skills!

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Gail

11 days ago

Woah, this is a real brain-teaser! I'm going to have to break out my calculator for this one. Okay, let's see... Carrying cost per unit, economic order quantity... Yikes, I'm getting a headache just thinking about it. But I'm going to give it my best shot!

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Detra

14 days ago

This question looks complex, but I think I can figure it out. Let's see, the city uses 1600 oil filters annually, the order cost is $5.00, the unit cost is $3.50, and the carrying cost is 20% or $0.70 per unit. Hmm, that means the economic order quantity is probably around 150, right?

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