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If relevant incremental costs are 5000 and relevant opportunity cost of...

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Costing
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If relevant incremental costs are $5000 and relevant opportunity cost of invested capital is $2500, then relevant inventory carrying costs would be

Answer & Solution
Correct Answer: Option A
Relevant inventory carrying costs = Relevant incremental costs + Relevant opportunity cost of invested capital
= $5000 + $2500 = $7,500
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