Inventory ________ Cost Is the Variable Cost of Keeping Items

question 210

Essay

Inventory ________ cost is the variable cost of keeping items on hand,including interest,storage and handling,taxes,insurance,and shrinkage.

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Definitions:

Expected Return

The average of all possible returns for an investment, weighted by the likelihood of each outcome.

Risky Asset

Asset that provides an uncertain flow of money or services to its owner.

Risk-free Asset

A financial instrument that is considered to have minimal risk of financial loss, such as government bonds.

Intercept

A term in mathematics and economics indicating the value where a function or line crosses an axis on a graph.