Carrying Costs Are Associated with Having Current Assets and Fall

question 81

Multiple Choice

Carrying costs are associated with having current assets and fall into which general category?

• A) The opportunity costs associated with having capital tied up in current assets instead of more productive fixed assets.
• B) Explicit costs necessary to maintain the value of current assets.
• C) both a and b
• D) neither a or b

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Definitions:

Thoroughly Educate

The process of providing extensive information and knowledge about a product, service, or topic to fully inform a person or audience.

Legal Problems

Issues or disputes that arise requiring resolution through legal means, often involving litigation or regulatory compliance challenges.

Misused Assets

Resources or assets that are not being utilized in an optimal or intended manner, leading to inefficiencies or loss within an organization.

Merchandise Credits

A form of store credit issued to a customer, typically from a returned item, for future purchases at that retailer.