If the annual carrying cost of material Z is ₹4 per unit and its total carrying cost is ₹12,000 p.a., the economic order quantity of the material is: (A) 3,000 units (B) 4,000 units (C) 5,000 units (D) 6,000 units

CS Executive · Cost and Management Accounting · PYQS · December 2017
If the annual carrying cost of material Z is ₹4 per unit and its total carrying cost is ₹12,000 p.a., the economic order quantity of the material is: (A) 3,000 units (B) 4,000 units (C) 5,000 units (D) 6,000 units
(A) 3,000 units
(B) 4,000 units
(C) 5,000 units
(D) 6,000 units

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Inventory Control

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