The Canine Kennel Uses 600 Cases of Dog Food Annually

question 8

Multiple Choice

The Canine Kennel uses 600 cases of dog food annually and orders 40 cases in each shipment.If the annual carrying cost per case (due to opportunity costs and extremely large dogs) is $5,what is the total annual carrying cost for dog food?

• A) $100
• B) $196
• C) $200
• D) $250

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Definitions:

Capital Account

An account showing the net worth of a business entity, including its equity and investments.

Asset Account

An account that records the assets owned by a company, showing their value on the balance sheet.

Cash Balance

The amount of cash or cash equivalents a company or individual possesses at any given time.

Disbursements

The act of paying out or distributing money, often by a business for various expenses.