Which of the Following Costs Is a Relevant Inventory Carrying

question 127

Multiple Choice

Which of the following costs is a relevant inventory carrying cost of carrying inventory?

• A) The lost contribution margin on future sales forgone as a result of customer dissatisfaction in product quality.
• B) The lost contribution margin on sales forgone because of the shortage of inventory.
• C) The costs of storage space owned that cannot be used for other profitable purposes when inventories decrease.
• D) The costs of shrinkage.

---

Definitions:

Ethics

A set of moral guidelines and principles that influence our behaviors and interactions.

Behaviors

Actions or reactions of a person or system, often in response to the environment or stimuli.

Misappropriation

The unauthorized use of another's name, likeness, or personal information for personal gain.

Trend

A general direction in which something is developing or changing, often reflected in popular behavior, opinion, or style.