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 ____________?

Related Mcqs:

1. 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 _____________?

   A. $9,650
   B. $2,350
   C. $3,750
   D. $2,750

2. 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

3. The required rate of return, is multiplied per unit cost of purchased units to calculate __________?

   A. irrelevant inventory carrying costs
   B. relevant opportunity cost of capital
   C. relevant purchase order costs
   D. relevant inventory carrying costs

4. 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

5. 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

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 beginning work in process equivalent units are 2500 units, work done in current period equivalent units are 3800 units and ending work in process equivalent units are 5000, then complete equivalent units in current period are _____________?

   A. 1800 units
   B. 1500 units
   C. 1300 units
   D. 1500 units

8. If the beginning work in process equivalent units are 2500 units, work done in current period equivalent units are 3800 units and units completed in current period are 4000, then ending work in process equivalent units will be ___________?

   A. 1800 units
   B. 2300 units
   C. 10300 units
   D. 1500 units

9. 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

10. 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