The Costs of Holding Inventory Include

question 49

Multiple Choice

The costs of holding inventory include

• A)carrying cost.
• B)carrying cost and order cost.
• C)insurance cost.
• D)carrying cost, order cost, and insurance cost.

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Definitions:

List of Accounts

A comprehensive list that includes all of a company's accounts and account numbers used within its accounting system.

Account Balances

The amount of money in a financial repository, such as a checking account, at any given moment.

Reference Column

A column in ledgers or journals used to cross-reference or track specific transactions.

General Journal

A comprehensive accounting ledger that records all financial transactions of a company in chronological order before they are transferred to specific accounts.