Examveda
Examveda

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

A. $5,000

B. $4,500

C. $5,500

D. $6,000

Answer: Option A


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Comments ( 2 )

  1. CA Pawan
    CA Pawan :
    3 years ago

    average inventory ka half carry hota h
    so 2000/2 = 1000 * 5 =1000

  2. Animesh Bera
    Animesh Bera :
    3 years ago

    total carrying cost= 1/2 *order size *carrying cost per unit per annum
    1/2*2000*5= 5000

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