What Are the Two Types of Costs Associated with Inventory

question 190

Multiple Choice

What are the two types of costs associated with inventory?

• A) Holding costs and selling costs
• B) Stock-out costs and holding costs
• C) Shipping and handling costs and holding costs
• D) Overstock costs and stock-out costs
• E) Holding costs and tracking costs

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Definitions:

Price

The value in terms of money expected, to be provided, or already given in exchange for a service.

Miles

A unit of measure equal to 5280 feet or about 1609 meters, commonly used to measure distances.

Second-Class Tickets

A category of tickets offering a level of service below first-class, typically at a lower cost, in transportation.

First-Class Tickets

Tickets that provide the highest level of service and amenities offered by an airline, train, or other transportation service.