Accounting Medium If the relevant incremental costs are $5000 and the relevant opportunity cost of invested capital is $2500, then the relevant inventory carrying costs would be ____________? A $7,500 ✓ B $7,000 ✓ C $6,500 ✓ D $6,000 ✓ AK Ali Khan 4 months ago
Accounting Medium The profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as ____________? A relevant purchase order costs ✓ B relevant inventory carrying costs ✓ C irrelevant inventory carrying costs ✓ D relevant opportunity cost of capital ✓ AK Ali Khan 4 months ago
Accounting Medium The costs of goods acquired from suppliers are classified as ___________? A stock-out costs ✓ B ordering costs ✓ C carrying costs ✓ D purchasing costs ✓ AK Ali Khan 4 months ago
Accounting Medium The activities related to coordinating, controlling and planning flow of inventory are classified as ___________? A decisional management ✓ B throughput management ✓ C inventory management ✓ D manufacturing management ✓ AK Ali Khan 4 months ago
Accounting Medium If the demand of one year is 25000 units, relevant ordering cost for each purchase order is $210, carrying cost of one unit of stock is $25 then the economic order quantity will be ___________? A 678 packages ✓ B 648 packages ✓ C 658 packages ✓ D 668 packages ✓ AK Ali Khan 4 months ago
Accounting Medium Which of the following is an example of purchasing costs? A incoming freight ✓ B storage costs ✓ C insurance ✓ D spoilage ✓ AK Ali Khan 4 months ago
Accounting Medium If an average inventory is 2000 units, annual relevant carrying cost of each unit is $5, then the annual relevant carrying cost will be __________? A $5,000 ✓ B $4,500 ✓ C $5,500 ✓ D $6,000 ✓ AK Ali Khan 4 months ago
Accounting Medium The cost of product failure, error prevention and appraisals can be classified under ___________? A stocking costs ✓ B stock-out costs ✓ C costs of quality ✓ D shrinkage costs ✓ AK Ali Khan 4 months ago
Accounting Medium The required rate of return, is multiplied per unit cost of purchased units to calculate __________? A irrelevant inventory carrying costs ✓ B relevant opportunity cost of capital ✓ C relevant purchase order costs ✓ D relevant inventory carrying costs ✓ AK Ali Khan 4 months ago
Accounting Medium The systematic flow of services, goods or information from the buying material for product delivery to the customers is known as __________? A supply chain ✓ B value chain ✓ C material flow chain ✓ D manufacturing flow chain ✓ AK Ali Khan 4 months ago