When the Carrying Cost of Inventory Is Expressed as a Percentage

Multiple Choice

When the carrying cost of inventory is expressed as a percentage:

A) the lower it is,the lower the economic order quantity.
B) it is usually the same as the borrowing cost of the organization.
C) it is multiplied by the unit variable manufacturing cost to calculate the per unit carrying cost.
D) it is multiplied by the total unit cost,including allocated fixed costs,to calculate the per unit carrying cost.
E) it is multiplied by the labor and material cost to calculate the per unit carrying cost.