Which of the Following Is a Carrying Cost

question 30

Multiple Choice

Which of the following is a carrying cost?

• A)cost of funds tied up in inventory
• B)cost of processing an order
• C)cost of preparing equipment for production
• D)cost of idled production facilities

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Definitions:

Charging Products

The process of setting a price for a product or service, often seen in context with digital or electrical items but broadly applicable.

Bottleneck

A point of congestion in a production system that occurs when workloads arrive too quickly for the process to handle, significantly slowing down production.

Manufacturing Machinery

Specialized machines and equipment dedicated to the production process in manufacturing operations.

Production Rate

The speed at which goods are manufactured or produced over a specific period, often measured in units per hour or per day.