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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$900
B. US$300
C. US$150
D. US$180
Answer: C
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. TRUE
B. FALSE
Answer: A
NEW QUESTION: 3
A. Option E
B. Option C
C. Option A
D. Option D
E. Option B
Answer: D