The Formula for Total Carrying Cost Is

question 28

Multiple Choice

The formula for total carrying cost is

• A) number of orders per year * cost of placing an order.
• B) number of orders per year/cost of placing an order.
• C) average number of units in inventory * cost of carrying one unit in inventory.
• D) average number of units in inventory/cost of carrying one unit in inventory.
• E) ordering cost + carrying cost.

---

Definitions:

Worldview

A comprehensive perspective from which one sees and interprets the world and their place within it.

Ethical Responsibility

Ethical responsibility refers to the moral obligation to act correctly towards others, including considerations of fairness, justice, and respecting the rights of individuals and the community.

Contingent Liability

A potential liability that has arisen as the result of a past event; it is not a definitive liability until some future event occurs.

Balance Sheet

A financial statement that displays a company's financial position at a specific point in time, listing assets, liabilities, and equity.