Q348
Profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as
A.
relevant purchase order costs
B.
relevant inventory carrying costs
C.
irrelevant inventory carrying costs
D.
relevant opportunity cost of capital
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as relevant opportunity cost of capital.