Lounsberry Inc

question 51

Multiple Choice

Lounsberry Inc. regularly uses material O55P and currently has in stock 360 liters of the material for which it paid $2,484 several weeks ago. If this were to be sold as is on the open market as surplus material, it would fetch $6.35 per liter. New stocks of the material can be purchased on the open market for $6.90 per liter, but it must be purchased in lots of 1,000 liters. You have been asked to determine the relevant cost of 800 liters of the material to be used in a job for a customer. The relevant cost of the 800 liters of material O55P is:

• A) $5,080
• B) $5,322
• C) $5,520
• D) $6,900

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Definitions:

Research Analysis

The process of systematically examining and evaluating data or information, often to extract insights or support decision making.

Convergent Validity

The extent to which two measures of the same concept are related, indicating that the measures are indeed measuring the same concept.

Conscientiousness

An indicator of personality that captures a person's organizational skills, their ability to be depended upon, and their deep commitment to what they owe.

Social Science Research

The study of society and social relationships through various methods to understand human behavior and social structures.