Processing Costs That Are Associated with Running the Inventory System

question 114

Multiple Choice

Processing costs that are associated with running the inventory system are referred to as _____ costs.

• A)carrying
• B)backorder
• C)systemic
• D)stock-keeping

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Definitions:

Preferred Stock

A type of stock that typically guarantees dividends and has priority over common stock in asset liquidation.

Dividends

Payments made by a corporation to its shareholder members. It is the share of profits and retained earnings that the company distributes to its shareholders.

Par Value

The nominal or face value of a bond, share of stock, or coupon as indicated on a certificate.

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its stock price, often used by investors to assess the income-generating ability of a stock.