BUISENESS MANAGEMENT
INVENTORY CONTROL
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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When developing inventory cost models, which of the following are not included as costs to place an order?
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Phone calls
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Taxes
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Clerical
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Calculating quantity to order
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Explanation:
Detailed explanation-1: -Storage cost is not included in the cost of inventory.
Detailed explanation-2: -Taxes have nothing to do with the cost management of the firm. So, these costs are not part of the costs that a company will incur costs in ordering their orders. Durlinger, P. P. J., & Paul, I. (2012).
Detailed explanation-3: -Ordering, holding, carrying, shortage and spoilage costs make up some of the main categories of inventory-related costs.
Detailed explanation-4: -Change in sales during the year is not a part of the inventory.
There is 1 question to complete.