ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The following classes of costs arre usually involved in inventory decision except
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Cost of ordering
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Carrying cost
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Cost of shortages
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Machining cost
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Explanation:
Detailed explanation-1: -The cost of inventory includes the cost of purchased merchandise, less discounts that are taken, plus any duties and transportation costs paid by the purchaser.
Detailed explanation-2: -There are three primary categories of inventory costs: ordering, carrying, and stockout costs. Understanding these different types of costs associated with inventory can help you understand the best ways to track, manage, and calculate the total costs of your inventory investment.
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