Evertz Metals buys and stockpiles dolomite to use in its smelting processes. Before all this dolomite is used, however, they alter their smelting process so that calcite limestone is used instead. How is the inventory cost of the unused dolomite best categorized?

A. a carrying cost

B. a holding cost

C. an acquisition cost

D. an order cost

Question

Business

Mireya Hahn

9 November, 00:09

Evertz Metals buys and stockpiles dolomite to use in its smelting processes. Before all this dolomite is used, however, they alter their smelting process so that calcite limestone is used instead. How is the inventory cost of the unused dolomite best categorized?

A. a carrying cost

B. a holding cost

C. an acquisition cost

D. an order cost

+2

Answers (1)

Know the Answer?

Roger Richards · Answer 1

a carrying cost

Explanation:

A carrying cost -

It is the amount which is paid for holding the inventory in the stock, is referred to as a carry cost.

It is also called inventory costs, holding costs.

Carrying cost includes the insurance, the amount spend on the stage of the products, employees cost and includes costs.

Hence, from the given scenario of the question, the correct term for the given options of the question is a carrying cost.