ExamVeda
Login
Home

If an average inventory is 2000 units annual relevant carrying cost...

This question belongs to Commerce Costing
Costing
?

If an average inventory is 2000 units, annual relevant carrying cost of each unit is $5, then annual relevant carrying cost will be

Answer & Solution
Correct Answer: Option A
Let's discuss the solution. Join the discussion
Examveda
Question posted by Examveda
Community

Join the Discussion

2 Comments
CA Pawan
CA Pawan 5 years ago
average inventory ka half carry hota h
so 2000/2 = 1000 * 5 =1000
Animesh Bera
Animesh Bera 6 years ago
total carrying cost= 1/2 *order size *carrying cost per unit per annum
1/2*2000*5= 5000
Keep Learning

Related Questions on Costing

Basic objective of cost accounting is ________
A. tax compliance. B. financial audit. C. cost ascertainment. D. profit analysis.
Process costing is suitable for ________.
A. hospitals B. oil refing firms C. transport firms D. brick laying firms
Cost classification can be done in ________.
A. two ways B. three ways C. four ways D. several ways
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost B. historical cost C. sunk cost D. shutdown cost
More Related Questions on Costing