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Evertz Metals Buys and Stockpiles Dolomite to Use in Its

Question 114

Multiple Choice

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) an acquisition cost
B) a carrying cost
C) an order cost
D) a holding cost
E) a hidden cost

Correct Answer:

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