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    Cornerstones of Cost Management Study Set 3
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    Exam 12: Activity-Based Management
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    A Company Has 19 Days of Finished Goods Inventory on Hand
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A Company Has 19 Days of Finished Goods Inventory on Hand

Question 96

Question 96

Multiple Choice

A company has 19 days of finished goods inventory on hand to avoid stockouts. The carrying costs of the inventory average $6,000 per day. The value-added costs would be


A) $100,000.
B) $-0-.
C) $5,000.
D) $10,000.

Correct Answer:

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