APICS Exam CPIM Topic 3 Question 114 Discussion

Actual exam question for APICS's CPIM exam

Question #: 114
Topic #: 3

[All CPIM Questions]

An SKU costing $10 is ordered in quantities of 500 units, annual demand is 5200 units, carrying costs are 20%, and the cost of placing an order is $50. Calculate annual inventory carrying cost

A$500

B$550

C$450

D$400

Show Suggested Answer

Suggested Answer: A

by Jacqueline at Jul 13, 2025, 09:40 PM

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Rueben

3 days ago

I think the answer is B) $550.

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Catarina

7 days ago

Alright, let's see... 500 units per order, 20% carrying cost, and $50 per order. Hmm, I'm going with B) $550. Gotta love those inventory calculations!

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Aaron

20 hours ago

User 1: I think the formula for annual inventory carrying cost is (Order Quantity / 2) * Carrying Cost

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