ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -Storage costs are the amount of money incurred as a result of storing inventory. The costs could be direct or indirect money spent on the storage of goods. The storage costs may include costs for space, rent, electricity, software, depreciation and warehouse personnel.
Detailed explanation-2: -Inventory is the accounting of items, component parts and raw materials that a company either uses in production or sells. As a business leader, you practice inventory management in order to ensure that you have enough stock on hand and to identify when there’s a shortage.
Detailed explanation-3: -Ordering Costs. Ordering costs include payroll taxes, benefits and the wages of the procurement department, labor costs etc. Inventory Holding Costs. Shortage Costs. Spoilage Costs. Inventory Carrying Costs.