Managing inventories to increase net income requires companies to effectively manage costs associated with goods for sale.
Required:
Classify the below listed items as either Purchasing Costs,Ordering Costs,Carrying Costs,Stockout Costs,Costs of Quality,or Shrinkage Costs.
___a. costs of obtaining purchase approvals
___b. costs resulting from embezzlement by employees
___c. internal failure costs
___d. opportunity cost of the investment tied up in inventory
___e. costs associated with storage
___f. costs of lost sales as a result of not having an item requested by a customer
___g. freight-in charges
___h. special processing costs
___i. costs of wages for work-int-process inspections
___j. costs that result from misclassifications and clerical errors
Correct Answer:
Verified
Q1: Among different types of costs associated with
Q5: Among different types of costs associated with
Q6: Among different types of costs associated with
Q8: Purchasing costs arise in preparing and issuing
Q9: Among different types of costs associated with
Q10: Which of the following statements is true
Q11: Inventory management is the planning, organizing, and
Q12: Stockout costs arise when an organization experiences
Q15: Shrinkage is measured by adding (a) the
Q20: The costs that result when a company
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