Which of the Following Statements Is True of Relevant Inventory

question 50

Multiple Choice

Which of the following statements is true of relevant inventory costs?

• A) The salaries paid to clerks, stock keepers, and materials handlers are relevant carrying costs if they are unaffected by changes in inventory levels.
• B) The costs of expediting an order from a supplier are relevant incremental costs of stockouts.
• C) Warehouse rent, warehouse workers' salaries and costs of insurance, that change with the quantity of inventory held are irrelevant carrying costs.
• D) Those ordering costs that change with the number of orders placed are irrelevant ordering costs.

---

Definitions:

Talent

Natural aptitude or skill in a specific area, such as music, sports, or art.

Regularly

Occurring at uniform intervals or consistently over a period of time.

Healthier

A state or condition of improved physical, mental, or emotional well-being.

Popular Internet

The term "Popular Internet" broadly refers to the most frequented or widely used websites and services on the internet.