The required rate of return, is multiplied per unit cost of purchased units to calculate


irrelevant inventory carrying costs


relevant opportunity cost of capital


relevant purchase order costs


relevant inventory carrying costs

Answer: (b).relevant opportunity cost of capital

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

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

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. An ability of an accounting system, to point out the use of resources in every step of production process is called

Q. The systematic flow of services, goods or information from the buying material for product delivery to the customers is known as

Q. The costs associated with storage of finished goods such as spoilage, obsolescence and insurance of goods are classified as

Q. The costs of goods acquired from suppliers are classified as

Q. 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

Q. 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

Q. The profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as

Q. An example of shrinkage costs is

Q. 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

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

Q. A push through system, according to which goods are manufactured for finished inventory solely, on the basis of forecasted demand can be classified as

Q. The relevant incremental costs are added into the relevant opportunity cost of capital to calculate

Q. If the economic order quantity for one year is 15000 packages and demand in units for one year are 1500 units, then number of deliveries in a year will be

Q. The number of purchase orders for each year is multiplied to relevant ordering cost for each purchase order to calculate

Q. The costing system, which omits some of the journal entries in accounting system is known as

Q. The decision model to calculate optimal quantity of inventory to be ordered is called

Q. The stage in manufacturing cycle at which journal entries are made in system of accountancy is known as

Q. 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

Q. The method of costing that supports creation of value for customer by accounting whole value stream, rather than individual departments or products is classified as

Q. The reorder point is divided by number of sold units for per unit of time to calculate

Recommended Subjects

Are you eager to expand your knowledge beyond Cost Accounting? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!