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NEW QUESTION: 1
An entity sells 1,500 units of a particular item each year and orders the items in equal quantities of 500 units at a price of US $5 per unit. No safety stocks are held. If the entity has a cost of capital of 12%, its annual opportunity cost of carrying inventory is:
A. US$150
B. US$180
C. US$900
D. US$300
Answer: A
Explanation:
The annual opportunity cost of carrying inventory equals the average inventory level, times the per-unit purchase price, times the cost of capital. The average inventory level is the order quantity divided by 2. Thus, the annual opportunity cost of carrying inventory is US $150 [(500 units -2) x $ 5x .12].
NEW QUESTION: 2
(Judgment) Image feature extraction is a dimensionality reduction idea, which can effectively reduce the amount of image data.
A. FALSE
B. TRUE
Answer: B
NEW QUESTION: 3
A. Option A
B. Option D
C. Option E
D. Option B
E. Option C
Answer: B