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Commerce · Q41

Business Finance

Graduate and Post Graduate · Commerce · question 41

Q41

Statement I: Working capital leverage measures the responsiveness of return on equity for changes in current assets. Statement II: When the annual demand for an item is 3,200 units, unit cost Rs. 6, inventory carrying charges 25% per annum and cost of one procurement Rs. 150, the economic ordering quantity would be 700 units.

A.
Both statements are true
B.
Both statements are false
Answer
C.
Statement I is true, but Statement II is false
D.
Statement I is false, but Statement II is true

Answer: Option B

Solution

Answer: Option B
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