When the Carrying Cost of Inventory Is Expressed as a Percentage

question 18

Multiple Choice

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

• A) it is usually the same as the borrowing cost of the organization.
• B) the lower it is, the lower the economic order quantity.
• C) it usually exceeds 57.5 percent per year.
• D) it must exclude the insurance cost of inventory.
• E) it is multiplied by the material unit cost to calculate the per unit carrying cost.

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Definitions:

Activity Theory

A theory that suggests aging individuals will find their lives satisfying to the extent that they can maintain active engagements and roles in society.

Social Attitudes

A learned tendency to evaluate societal entities with some degree of favor or disfavor.

Property Taxes

Taxes levied on property owners by local governments, based on the assessed value of their property.

Financial Resources

Funds available to a person or organization for spending in the form of cash, liquid securities, and credit lines.