Which of the Following Statements Is FALSE with Regard to Holding

question 77

Multiple Choice

Which of the following statements is FALSE with regard to holding costs?

• A)The holding cost per unit per period is expressed as a percentage of the purchase price (P).
• B)The holding cost per unit per period is called the carrying rate.
• C)The holding cost per unit per period is called the holding rate.
• D)The holding cost per unit per period is expressed as a percentage of ordering costs.

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Definitions:

Revenue

The total amount of money earned by a company from its business activities, such as the sale of goods and services, before any expenses are deducted.

Departmental Income Statements

Financial statements that show the operating results of each department within a company, highlighting revenues and expenses.

Profit Center

A branch or division of a business that is responsible for generating its own revenue and profit.

Cost Center

A department within an organization that does not directly add to profit but still incurs costs.