Use the Following to Answer Questions

question 13

Multiple Choice

Use the following to answer questions:
Scenario 12-2. Jeremy's Jewels is a retail store that specializes in medium-quality, medium-priced jewelry. It is located in a mall in downtown Yosako, Kansas. Jeremy is concerned about his inventory costs. He has several questions concerning purchasing, choosing suppliers, and how much inventory he actually needs. Lately, his cash flow has been severely strained due to the fact too much cash is being tied up in inventory. Jeremy is currently the only employee of his small business.
-In Scenario 12-2 above, all but which of the following are costs of carrying inventory that Jeremy must consider?

• A) Financing
• B) Holding costs
• C) Ordering costs
• D) Sales costs

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Definitions:

Preferred Stock

Stock that conveys preferences to its holders with respect to assets and dividends.

Dividends

Payments made by a corporation to its shareholders, usually derived from the company's profits.

Assets

Resources owned by a person or a company, regarded as having value and available to meet debts, commitments, or legacies.

Debt Securities

Securities that represent loans to a corporation.