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    Cornerstones of Cost Management Study Set 1
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    Exam 20: Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints
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    Southwestern Supply Company Has an Economic Order Quantity for Item
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Southwestern Supply Company Has an Economic Order Quantity for Item

Question 98

Question 98

Multiple Choice

Southwestern Supply Company has an economic order quantity for item A of 200 units. The annual demand for the product is 5,000 units, and the cost of placing an order is $8. The carrying cost per unit is


A) $6.00.
B) $2.00.
C) $4.00.
D) $141.00.

Correct Answer:

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