Figure 24-2 Hapsburg Manufacturing Purchases Components Produced by Little Company in the in the Manufacture

question 21

Multiple Choice

Figure 24-2
Hapsburg Manufacturing purchases components produced by Little Company in the manufacture of its main product. For the next year, Hapsburg expects to use a total of 20,000 parts. Hapsburg typically orders 2,000 units at a time. The cost of placing an order is £100, and the average annual cost of carrying one unit of inventory is £5.
-Refer to Figure 24-2. Hapsburg's total ordering cost is

• A)£1,000.
• B)£5,000.
• C)£10,000.
• D)£500.

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Definitions:

Sustainable Competitive Advantage

A unique attribute or position a company gains that is difficult for competitors to replicate, ensuring long-term business success.

Total Compensation

The complete pay package for employees, including salary, benefits, bonuses, and any other financial rewards.

Strategic Objectives

The specific goals set by a business or an organization to guide its operations and to achieve long-term achievements.

Dodd-Frank Act

United States federal law that places regulation of the financial industry in the government's hands to prevent financial crises.