When the Carrying Cost of Inventory Is Expressed as a Percentage

question 18

Multiple Choice

When the carrying cost of inventory is expressed as a percentage:

• A) it is usually the same as the borrowing cost of the organization.
• B) the lower it is, the lower the economic order quantity.
• C) it usually exceeds 57.5 percent per year.
• D) it must exclude the insurance cost of inventory.
• E) it is multiplied by the material unit cost to calculate the per unit carrying cost.

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Definitions:

Adaptive Character

The ability of an individual to adjust and adapt to changes in their environment or circumstances.

ACT Theory

A psychological model that seeks to explain human cognition by understanding how information is stored, processed, and retrieved in the mind.

Motivational Interventions

Strategies or techniques used to enhance individuals' motivation aimed at encouraging participation, effort, and persistence in activities, particularly in educational settings.

Self-Regulation

The ability of an individual to manage their thoughts, emotions, and behaviors to achieve long-term goals.