Which of the Following Is Not a Component of Holding

question 10

Multiple Choice

Which of the following is not a component of holding cost?

• A)Taxes
• B)Insurance
• C)Material handling
• D)Order processing

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Definitions:

Tax Rate

The proportionality of income subject to tax for either a person or a business.

Discount Rate

This refers to the interest rate applied for computing the present value of forthcoming cash flows in the context of discounted cash flow analysis.

Present Value

The current valuation of future monetary sums or cash flow streams, using a given return rate for discounting.

Capital Cost Allowance (CCA)

A taxable expense in Canada that a business can claim for the depreciation of tangible property.