Return to the Homepage Management Accounting: Costing Test One
Q1 of 15

The 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

The Economic Order Quantity (EOQ) for KL56 is kilograms.