Which of the following statements is FALSE with regard to holding costs?
A)The holding cost per unit per period is expressed as a percentage of the purchase price (P).
B)The holding cost per unit per period is called the carrying rate.
C)The holding cost per unit per period is called the holding rate.
D)The holding cost per unit per period is expressed as a percentage of ordering costs.

Question

Quizplus · Accepted Answer

The holding cost per unit per period is not expressed as a percentage of ordering costs. It is expressed as a percentage of the purchase price.

Which of the Following Statements Is FALSE with Regard to Holding