Answer:
B. Monthly ordering cost is greater than monthly holding cost
Explanation:
B is correct because monthly ordering cost for 15 orders ( quantity / order size) will be 15x20 =300 Which is higher than the holding cost = 100x1 =100
This is true because it cannot fall on one person
This transaction will affect the financial statement by: Increase inventory and increase accounts payable.
<h3>Financial statement:</h3>
Assuming the company purchased merchandise inventory on account of the amount of $8,500 using the perpetual inventory method the effect of the transaction on the financial statement is: Inventory will increase by $8,500 and accounts payable will increase by $8,500.
The company inventory will increase due to the purchase they made while the company accounts payable will increase because the company purchased the goods on credit which simply means that they are yet to pay their suppliers.
Inconclusion this transaction will affect the financial statement by: Increase inventory and increase accounts payable.
Learn more about financial statement here:brainly.com/question/24498019
