June 2015

1:

Statement - I :

Working capital leverage measures the responsiveness of Return on Equity for changes in current Assets.

Statement - II :

When the annual demand for an item is 3200 units, unit cost Rs 6, inventory carrying charges 25% p.a. and cost of one procurement Rs 150, the economic ordering quantity would be 700 units.

Codes

 

 

A.

Both statements are correct

B.

Both statements are incorrect

C.

Statement - I is correct and Statement - II is incorrect

D.

Statement - I is incorrect and Statement - II is correct

 

Answer : B

Explanation :

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Option: A

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