CIPS Level 4 Whole Life Asset Management L4M7 · Free Practice Question Easy
Question 3
A supermarket calculates that the average holding cost for an item is $1.50 per cubic meter per day. A beer pallet which has volume of 0.5 cubic meter will be stored for 5 days. What is the holding cost of this beer pallet?
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A
$3.75
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B
$4.50
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C
$4.25
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D
$4.00
Reveal correct answer
Correct answer: A
Explanation
The holding cost per day of the beer pallet is equal to 1.50/2=0.75
The beer pallet is stored for 5 days, the total holding cost is: 0.75*5=3.75.
LO 2, AC 2.2
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