Which of the Following Is an Example of an Inventory

question 98

Multiple Choice

Which of the following is an example of an inventory service cost that would be considered a part of inventory costs?

• A)opportunity costs resulting from tying up funds in inventory instead of using them in other, more profitable investments
• B)costs due to possible loss, damage, pilferage, or obsolescence
• C)costs of the finished goods inventory itself
• D)costs such as insurance and taxes that are present in many states

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Definitions:

Business Buying Process

A series of decisions made by organizations while purchasing products or services for operational, production, or reselling purposes.

Consumer Buying Process

A series of steps that consumers undergo when making a purchasing decision, including need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.

Business Markets

Markets where goods and services are sold for purposes other than personal consumption, typically involving transactions between companies.

Behavioral Segmentation

The process of dividing a market into groups based on consumer behaviors and patterns.