A Company Has 19 Days of Finished Goods Inventory on Hand

question 96

Multiple Choice

A company has 19 days of finished goods inventory on hand to avoid stockouts. The carrying costs of the inventory average $6,000 per day. The value-added costs would be

• A)$100,000.
• B)$-0-.
• C)$5,000.
• D)$10,000.