Which of the Following Is the Set of All Cost

question 79

Multiple Choice

Which of the following is the set of all cost components that make up the fixed-order quantity total cost (TC) function?

• A)Annual purchasing cost,annual ordering cost,fixed cost
• B)Annual holding cost,annual ordering cost,unit cost
• C)Annual holding cost,annual ordering cost,annual purchasing cost
• D)Annual lead time cost,annual holding cost,annual purchasing cost
• E)Annual unit cost,annual set up cost,annual purchasing cost

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Definitions:

Residual Dividend Theory

A policy whereby a company pays dividends to shareholders from leftover earnings after all operational costs and capital investment projects are covered.

Operating Income (EBIT)

Refers to an entity's earnings before interest and taxes, calculated by subtracting operating expenses from gross income, indicating the profitability from regular operations.

Payout Ratio

The proportion of earnings a company pays to its shareholders in the form of dividends.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, representing the percentage of tax applied to your income for each tax bracket in which you qualify.