A company is analysing its inventory management practices and has determined that the Economic Order Quantity (EOQ) is 400 units. The cost incurred…
CA Intermediate · Cost and Management Accounting · PYQS · January 2025
A company is analysing its inventory management practices and has determined that the Economic Order Quantity (EOQ) is 400 units. The cost incurred for placing a single order is 25, while the total demand for the year amounts to 8,000 units. Calculate the Carrying Cost per unit.
Suggested Answer and Working Notes:
Correct Answer: Option (D)
₹ 2.50 per unit
Topics: Material Cost
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