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.

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