Matt runs a small business. If he purchases raw material inventory using his own money without...
Matt runs a small business. If he purchases raw material inventory using his own money without taking a loan then cost of capital of his inventory is zero.
Group of answer choices
True
False
Homework Answers
The answer is FALSE
The cost associated with own money is the opportunity cost of
capital i.e. the return which could have been earned has the money
not been invested in Inventory
The cost is associated not only with loan but with own money as well
Hence, the answer is FALSE
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Matt runs a small business. If he purchases raw material
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