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    Cornerstones of Cost Accounting
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    Exam 14: Activity-Based Management
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    A Company Has 5 Days of Finished Goods Inventory on Hand
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A Company Has 5 Days of Finished Goods Inventory on Hand

Question 14

Question 14

Multiple Choice

A company has 5 days of finished goods inventory on hand to avoid stockouts.The carrying costs of the inventory average $5,000 per day.What are the value-added costs?


A) $1,000
B) $5,000
C) $15,000
D) $25,000

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