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Commerce · Q341

Costing

Graduate and Post Graduate · Commerce · question 341

Q341

Required rate of return, is multiplied per unit cost of purchased units to calculate

A.
irrelevant inventory carrying costs
B.
relevant opportunity cost of capital
Answer
C.
relevant purchase order costs
D.
relevant inventory carrying costs

Answer: Option B

Solution

Answer: Option B
Solution:
Required rate of return, is multiplied per unit cost of purchased units to calculate relevant opportunity cost of capital.