The Inventory Cost That Can Include Insurance, Inventory Taxes, and Obsolescence

question 19

Multiple Choice

The inventory cost that can include insurance, inventory taxes, and obsolescence is called

• A) ordering cost.
• B) carrying cost.
• C) stockout cost.
• D) setup cost.
• E) storing cost.

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Definitions:

Smaller

Of less size, amount, or scale compared to others of its kind.

Environmental Uncertainty

A condition that exists when the external environment is vague, difficult to diagnose, and unpredictable.

Organizational Effectiveness

A measure of how successfully an organization achieves its goals and objectives, often evaluated through performance, adaptability, and sustainability.

External Environment

The external environment of an organization includes all outside factors and forces that affect its operations, ranging from economic, socio-cultural, legal, technological, to political conditions.