_____ Are Calculated as Average Inventory in Units X Unit

question 46

Multiple Choice

_____ are calculated as Average Inventory in Units x Unit Price x Carrying Cost per Year.

• A)Quality costs
• B)Ordering costs
• C)Inventory carrying costs​
• D)MRO costs
• E)Cycle counting costs

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Definitions:

Current Liabilities

Financial liabilities that need to be settled within a year or within the standard operating period of the company.

Long-Term Liabilities

Financial obligations of a business that are due more than one year in the future, such as bonds payable, long-term loans, and lease liabilities.

Adjusting Entry

An accounting record created at the closing of a fiscal period to assign revenues and expenses to their respective periods.

Reversing Entry

An accounting entry that is made at the beginning of a period to reverse or cancel out an adjusting entry made in the previous period.