ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
A company selling office furniture is worried about how much it is costing them to store their products in a warehouse. What is this referring to?
|
Opportunity costs
|
|
Work-in-process goods
|
|
Carrying costs
|
|
Capital loss
|
Explanation:
Detailed explanation-1: -Holding costs can include the cost of insurance. Ordering and setup costs are treated the same. Which statement about holding costs, also known as carrying costs, are correct? Carrying costs can be stated as a constant.
Detailed explanation-2: -Which TWO of the following should be taken into account when determining the cost of inventories per IAS2 Inventories ? The correct answers are trade discounts (deduct these from purchase costs) and storage costs for part-finished (but not finished ← ) goods.
There is 1 question to complete.