Monthly consumption of a material; Economic order quantity and cost per order are 6000 units; 4000 units and ₹1,500 respectively, then total annual carrying cost will be :

CS Executive · Cost and Management Accounting · PYQS · December 2021
Monthly consumption of a material; Economic order quantity and cost per order are 6000 units; 4000 units and ₹1,500 respectively, then total annual carrying cost will be :
(A) ₹27,000
(B) ₹3,000
(C) ₹3,00,000
(D) Not possible to compute in this case

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Inventory Management

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