 Management Accounting: Costing Test One
    Management Accounting: Costing Test OneThe following questions relate to the costs and revenues of Marstow Limited, a manufacturing business.
The following information is available for raw material type KL56:
    
| • Annual usage | 2,500 kilograms | 
| • Annual holding cost per kilogram | £5.00 | 
| • Fixed ordering cost | £10.00 |