Question

Evertz Metals buys and stockpiles dolomite to use in its smelting processes. Before all this dolomite is​ used, however, they alter their smelting process so that calcite limestone is used instead. How is the inventory cost of the unused dolomite best​ categorized?

A. a carrying cost
B. a holding cost
C. an acquisition cost
D. an order cost

Answer 1

a carrying cost

Step-by-step explanation:

A carrying cost -

It is the amount which is paid for holding the inventory in the stock , is referred to as a carry cost.

It is also called inventory costs , holding costs.

Carrying cost includes the insurance , the amount spend on the stage of the products , employees cost and includes costs .

Hence, from the given scenario of the question, the correct term for the given options of the question is a carrying cost.