CIPS Level 4 Whole Life Asset Management L4M7 · Free Practice Question Easy
Question 7
How much does it cost to store a pallet of cooking oil in a warehouse for 7 days if the space cost is £1.80 per cubic metre per day and the pallet occupies 0.5 cubic metres?
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A
£1.94
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B
£25.2
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C
£6.3
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D
£12.6
Reveal correct answer
Correct answer: C
Explanation
Storage costs are the amount of money incurred as a result of storing inventory. The costs could be direct or indirect money spent on the storage of goods. The storage costs may include costs for space, rent, electricity, software, depreciation and warehouse personnel.
In the question, the storage cost = 1.8 * 0.5 * 7 = £6.3
Discussion
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