The following informations are given : 10,000 units of material are consumed per year; per unit cost is ₹20; cost of processing an order is ₹50; Annual interest rate is 5%; Annual carrying cost of material per unit is 15
CS Executive · Cost and Management Accounting · PYQS · June 2019
The following informations are given : 10,000 units of material are consumed per year; per unit cost is ₹20; cost of processing an order is ₹50; Annual interest rate is 5%; Annual carrying cost of material per unit is 15% (other than interest). What would be the Economic Order Quantity (EOQ)?
Answer & Explanation:
Correct Answer: Option (B)
Official answer key: (B).
Topics: Material Cost
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