Mendelsohn Company Keeps 20 Days of Materials Inventory on Hand

question 113

Multiple Choice

Mendelsohn company keeps 20 days of materials inventory on hand to avoid shutdowns due to materials shortages. Carrying costs average $4,000 per day. Bach, Inc., a competitor, keeps 10 days of inventory on hand, and the competitor's carrying costs average $2,000 per day.
The value-added costs are

• A)$0.
• B)$40,000.
• C)$20,000.
• D)$80,000.

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Definitions:

Conscious Experience

The subjective awareness of the mind regarding thoughts, feelings, and perceptions, encompassing the aspects of consciousness that are introspectively accessible.

Wilhelm Wundt

Known as the father of experimental psychology, he established the first psychological laboratory in Leipzig, Germany, in 1879.

Observable Behaviour

Actions or reactions of an individual that can be directly seen and measured by others.

Early 1700s

Refers to the time period from the year 1700 to 1709, marking the early years of the 18th century.