O-LevelCommerceWarehousing7100/11 · May/June 2011 · Q271 Mark

What happens for each extra day that goods are kept in a warehouse?

AInterest is lost on the capital invested in the goods.

BMore interest is gained on the capital invested in the goods.

CMore transport is needed for moving the goods.

DThe warehousing bill for the goods is reduced.

✓ Correct answer

A: Interest is lost on the capital invested in the goods.

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Topic: Warehousing, O-Level Commerce (syllabus 7100). Multiple choice, 1 mark.
Source: O-Level Commerce, May/June 2011 Paper 1 Variant 1, question 27.

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