Evertz Metals Buys and Stockpiles Dolomite to Use in Its

question 20

Multiple Choice

Evertz Metals buys and stockpiles dolomite to use in its smelting processes. Before all this dolomite is used, however, they alter their smelting process so that calcite limestone is used instead. How is the inventory cost of the unused dolomite best categorized?

• A) an acquisition cost
• B) a carrying cost
• C) an order cost
• D) a holding cost

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Definitions:

Compound Acinar

A type of glandular structure in which secretory cells form sac-like acini connected to ducts, found in some exocrine glands such as the pancreas and salivary glands.

Branching Ducts

Part of the ductal system in various glands, branching off to increase the area of influence or secretion within an organ.

Simple Acinar

Pertaining to a type of simple glandular structure in the epithelium that has a single secretory duct and is typically globular in shape.

Holocrine Gland

Gland whose secretion is formed by the disintegration of entire cells (e.g., sebaceous gland).