The Combined Costs of Holding Inventory Are Called

question 48

Multiple Choice

The combined costs of holding inventory are called

• A) opportunity costs.
• B) storage costs.
• C) carrying costs.
• D) stocking charges.
• E) maintenance costs.

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Definitions:

Commission

A fee paid to an agent or employee for facilitating a sale or for performing a service.

Profit

The financial gain obtained when the revenues earned from business activities exceed the expenses, taxes, and costs associated with sustaining the activity.

Consent

Permission or assent to conduct that would otherwise constitute a tort such as assault and battery; can be expressed or implied; informed consent constitutes a defence to torts such as assault and battery.

Purchasing Agent

A professional responsible for acquiring goods or services for their employer through negotiating price and terms.