A Company Keeps 20 Days of Materials Inventory on Hand

question 60

Multiple Choice

A company keeps 20 days of materials inventory on hand to avoid shutdowns due to materials shortages. Carrying costs average $4,000 per day. A competitor keeps 10 days of inventory on hand, and the competitor’s carrying costs average $2,000 per day.
-Refer to the figure..What would be the non-value-added costs?

• A)$5,000
• B)$30,000
• C)$75,000
• D)$80,000

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Definitions:

Antigens

Substances that the immune system recognizes as foreign, triggering an immune response.

Allergens

Substances that can cause an allergic reaction in some individuals.

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A scale measuring the stress load individuals carry, based on major life changes.

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