When carrying costs are stated as a percentage of unit price, the minimum points on the total cost curves
A)line up.
B)equal zero.
C)do not line up.
D)cannot be calculated.
E)depend on the percentage assigned.

Question

Quizplus · Accepted Answer

When carrying costs are stated as a percentage of unit price, the minimum points on the total cost curves do not line up because the carrying cost changes with the unit price, affecting the total cost differently for items of different values.

When Carrying Costs Are Stated as a Percentage of Unit