When the Carrying Cost of Inventory Is Expressed as a Percentage

question 27

Multiple Choice

When the carrying cost of inventory is expressed as a percentage:

• A)the lower it is,the lower the economic order quantity.
• B)it is usually the same as the borrowing cost of the organization.
• C)it is multiplied by the unit variable manufacturing cost to calculate the per unit carrying cost.
• D)it is multiplied by the total unit cost,including allocated fixed costs,to calculate the per unit carrying cost.
• E)it is multiplied by the labor and material cost to calculate the per unit carrying cost.

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