Capital cost can focuses on the cost capital tied up in ____ and the resulting lost opportunity from investing elsewhere.
A) plants
B) inventory
C) distribution centers
D) WIP

Question

Quizplus · Accepted Answer

Capital tied up in inventory is a major consideration in capital cost as it can limit the company's ability to invest elsewhere and generate returns. Plants, distribution centers, and work-in-progress (WIP) also have capital tied up in them, but they may not be as significant as inventory in terms of opportunity cost.

Capital Cost Can Focuses on the Cost Capital Tied Up