The Cost of Carrying One Unit in Inventory for a Specified

question 43

Multiple Choice

The cost of carrying one unit in inventory for a specified period of time,usually one year,is referred to as

• A)the material cost and is denoted by C.
• B)the fixed ordering cost and is denoted by S.
• C)the holding cost and is denoted by H.
• D)the purchase price and is denoted by P.

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Definitions:

Full Truckload Shipment

A shipping mode where a truck carries cargo sufficient to fill an entire trailer, maximizing capacity utilization.

High-low Pricing

A retail strategy where items are initially offered at high prices but later discounted to stimulate sales.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices during a specified period of time.

Range of Sale Price

The difference between the highest and lowest selling price of a product in a marketplace over a defined period.