If the relevant opportunity cost of capital is $2950 and the relevant carrying cost of inventory is $6700, then the relevant incremental cost will be _____________?

Related Mcqs:

1. If the relevant incremental costs are $5000 and the relevant opportunity cost of invested capital is $2500, then the relevant inventory carrying costs would be ____________?

   A. $7,500
   B. $7,000
   C. $6,500
   D. $6,000

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

   A. $5,000
   B. $4,500
   C. $5,500
   D. $6,000

3. The relevant incremental costs are added into the relevant opportunity cost of capital to calculate ___________?

   A. purchase order costs
   B. relevant inventory carrying costs
   C. irrelevant inventory carrying costs
   D. relevant ordering costs

4. If the required rate of return is 12% and the per unit cost of units purchased is $35, then the relevant opportunity cost of capital will be ____________?

   A. $6.20
   B. $7.20
   C. $4.20
   D. $5.20

5. An average inventory in units is multiplied with annual relevant carrying cost of each unit to calculate ____________?

   A. annual irrelevant ordering costs
   B. annual relevant carrying costs
   C. annual relevant ordering costs
   D. annual irrelevant carrying costs

6. The per unit opportunity cost to the selling subunit of company, is added into per unit incremental cost is incurred at point of transfer to calculate ____________?

   A. minimum operating cost
   B. maximum operating costs
   C. maximum transfer price
   D. minimum transfer price

7. If the opportunity cost per barrel is $45 per unit, incremental cost per barrel is $65, then minimum transfer price will be __________?

   A. $45
   B. $110
   C. $20
   D. $65

8. The relevant ordering costs are added into relevant carrying costs to calculate __________?

   A. relevant total costs
   B. contribution costs
   C. throughput costs
   D. optimized costs

9. If the demand in units are 18000, relevant ordering cost for each year is $150 and an order quantity is 1500, then annual relevant ordering cost would be __________?

   A. $200
   B. $190
   C. $160
   D. $180

10. If the demand of one year is 25000 units, relevant ordering cost for each purchase order is $210, carrying cost of one unit of stock is $25 then the economic order quantity will be ___________?

    A. 678 packages
    B. 648 packages
    C. 658 packages
    D. 668 packages