Alpha Company Places 10 Orders Per Year with Its Supplier

question 3

Multiple Choice

Alpha Company places 10 orders per year with its supplier.Each order is for an amount exactly equal to the EOQ.Alpha's order cost has been determined to be $50 per order.Alpha carries no safety stock at all.What is Alpha's annual inventory carrying cost?

• A)cannot be determined without further information
• B)$50
• C)$250
• D)$500

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Definitions:

Supplies Inventory

The stock of necessary supplies and materials held by a business for its daily operations or production activities.

Accounts Receivable Balances

Amounts of money owed to a company by customers for goods or services provided on credit.

QuickBooks Data File

Files created by QuickBooks software to store various types of business and financial information, crucial for generating reports, managing invoices, and other accounting tasks.

Uncategorized Expenses

Uncategorized expenses are expenses that have not been assigned to a specific expense category in the accounting records.