Figure 24-4 Buckner Manufacturing Purchases Components Produced by Cochran Company in the in the Manufacture

question 5

Multiple Choice

Figure 24-4
Buckner Manufacturing purchases components produced by Cochran Company in the manufacture of their main product. For the next year, Buckner expects to use a total of 30,000 parts. Buckner typically orders 500 units at a time. The cost of placing an order is £40, and the average annual cost of carrying one unit of inventory is £2.
-Refer to Figure 24-4. Buckner's total carrying cost is

• A)£1,000.
• B)£500.
• C)£2,400.
• D)£2,900.

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Definitions:

Managerial Power

The authority and influence that managers hold to make decisions, allocate resources, and direct the activities of others within an organization.

Expert Power

A form of power that arises from possessing knowledge or expertise in a particular area that others value.

Expert Power

The influence a person has over others due to their recognized expertise, skills, or knowledge in a specific area.

Coercive Power

The capacity to control others through the fear of punishment or the loss of valued outcomes.