Which of the Following Is Not a Component of Total

question 52

Multiple Choice

Which of the following is not a component of total inventory cost?

• A)Annual demand
• B)Order quantity
• C)Inventory position
• D)Ordering cost
• E)Overhead cost

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Definitions:

Firm

A business organization, such as a corporation or partnership, that sells goods or services in exchange for revenue.

Price Falls

A decrease in the market price of goods or services, often due to increased supply, decreased demand, or external economic factors.

Technological Advance

Progress in the development and application of scientific knowledge and tools that improve efficiency, productivity, and quality of life.

Production Costs

The expenses directly associated with the manufacture of goods or services, including labor, materials, and overhead.