Which Cost Should Reflect the Incremental Change in Space Cost

question 82

Multiple Choice

Which cost should reflect the incremental change in space cost due to changing cycle inventory?

• A)Cost of capital
• B)Obsolescence (spoilage)cost
• C)Handling cost
• D)Occupancy cost

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Definitions:

Average Unit Cost

The total cost of goods available for sale divided by the number of units available for sale, used to value inventory.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, giving more weight to some numbers than others.

Self-Constructed Property

Real estate or assets that a company builds for its own use, rather than purchasing or leasing from another entity.