Which of the Following Costs Is Included in the Cost

question 3

Multiple Choice

Which of the following costs is included in the cost of acquiring inventory?

• A)setup costs for goods produced internally
• B)cost of insurance on the warehouse for inventory
• C)cost of not having a product when a customer wants one
• D)cost of obsolescence

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Definitions:

Nash Equilibrium

A concept in game theory where no participant can gain by a unilateral change of strategy if the strategies of the others remain unchanged.

Annual Profit

The total revenue a company generates in one year after all expenses have been deducted.

Dominant Strategy

A strategy in a game theory that yields the best outcome for a player, irrespective of the strategies adopted by other players.

Payoff Matrix

Table showing profit (or payoff) to each firm given its decision and the decision of its competitor.