A. stocking costs
B. stock-out costs
C. costs of quality
D. shrinkage costs
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If an average inventory is 2000 units, annual relevant carrying cost of each unit is $5, then the annual relevant carrying cost will be __________?
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Which of the following is an example of purchasing costs?
A. $5,000
B. $4,500
C. $5,500
D. $6,000
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If the demand of one year is 25000 units, relevant ordering cost for each purchase order is $210, carrying cost of one unit of stock is $25 then the economic order quantity will be ___________?
A. incoming freight
B. storage costs
C. insurance
D. spoilage
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The activities related to coordinating, controlling and planning flow of inventory are classified as ___________?
A. 678 packages
B. 648 packages
C. 658 packages
D. 668 packages
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The costs of goods acquired from suppliers are classified as ___________?
A. decisional management
B. throughput management
C. inventory management
D. manufacturing management
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The profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as ____________?
A. stock-out costs
B. ordering costs
C. carrying costs
D. purchasing costs
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If the relevant incremental costs are $5000 and the relevant opportunity cost of invested capital is $2500, then the relevant inventory carrying costs would be ____________?
A. relevant purchase order costs
B. relevant inventory carrying costs
C. irrelevant inventory carrying costs
D. relevant opportunity cost of capital
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The number of purchase orders for each year is multiplied to relevant ordering cost for each purchase order to calculate _____________?
A. $7,500
B. $7,000
C. $6,500
D. $6,000
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The method of costing that supports creation of value for customer by accounting whole value stream, rather than individual departments or products is classified as __________?
A. annual irrelevant ordering costs
B. annual relevant carrying costs
C. annual relevant ordering costs
D. annual irrelevant carrying costs
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