If We Are Producing the Product or Component In-House,then the Total

question 85

Multiple Choice

If we are producing the product or component in-house,then the total inventory-related cost on an annual basis is ______.

• A)the sum of total annual setup cost and total annual holding cost less the sum of total annual stock-out cost and total annual materials purchase cost
• B)the ratio of the sum of total annual setup cost and total annual holding cost to the sum of total annual stock-out cost and total annual materials purchase cost
• C)total annual setup cost + total annual holding cost + total annual stock-out cost + total annual materials purchase cost
• D)the product of the sum of total annual setup cost and total annual holding cost to the sum of total annual stock-out cost and total annual materials purchase cost