A Company Has Collected the Following Inventory Data for an Item

question 23

Multiple Choice

A company has collected the following inventory data for an item. What is the total annual cost for this item? $\begin{array}{llcc} \text { Annual demand for the item } & \text {D=500}\\ \text { Unit purchase cost for the item } &\text {C=10}\\ \text { Fixed cost of placing an order } &\text {S=20}\\ \text { Cost of holding one unit in inventory for a year } &\text {i=30\%}\\ \text { Order quantity } &\text {Q=50}\\\end{array}$

• A) 275
• B) 450
• C) 5,275
• D) 5,450

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Definitions:

Governmental Authority

Denotes the legal and formal right of a government to enact laws, enforce rules, and regulate behaviors within its jurisdiction.

Traditional Authority

refers to a form of leadership in which the power of rulers is rooted in customs, traditions, and societal norms, often passed down through generations within families or clans.

Bureaucracy

An organizational structure characterized by standardized procedure, hierarchy of authority, and a clear division of labor, often within governmental agencies.

Capitalism

A financial system in which commerce, business, and resources are primarily or wholly owned and managed by private individuals for monetary gain.