Acute Ltd. is committed to supply 24,000 bearings per annum to Mighty Ltd. on a steady basis. It is estimated that it costs 10 paise as inventory holding cost per bearing per month and that the set-up cost per run of bea
CS Executive · Cost and Management Accounting · PYQS · June 2016
Acute Ltd. is committed to supply 24,000 bearings per annum to Mighty Ltd. on a steady basis. It is estimated that it costs 10 paise as inventory holding cost per bearing per month and that the set-up cost per run of bearing manufacture is ₹324. The optimum run size for bearing manufacture would be —
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Inventory Management
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