Which of the Following Is Usually Included as an Inventory

question 81

Multiple Choice

Which of the following is usually included as an inventory holding cost?

• A) Order placing
• B) Breakage
• C) Typing up an order
• D) Quantity discounts
• E) Annualized cost of materials

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Definitions:

Firm's Output

The overall amount of products or services generated by a company over a specific timeframe.

Short Run

A period in economics during which the quantities of one or more production inputs cannot be changed, making some costs fixed.

Long Run

A period in economics during which all factors of production and costs are variable, allowing full adjustment to any change in the economic environment.

Break-Even Point

This is the point at which total revenues equal total costs, and the business or project makes neither a profit nor a loss.