Which of the Following Is a Cost of Holding Inventory

question 59

Multiple Choice

Which of the following is a cost of holding inventory?

• A) Workers comp
• B) Reordering costs
• C) Conversion costs
• D) Insurance costs

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Definitions:

Automatization

The process by which a skill becomes so practiced that it can be performed with little conscious effort.

Categorization

The cognitive process of organizing objects, ideas, or experiences into groups based on shared characteristics or attributes.

Information Processing Approach

This concept refers to the way humans process information, drawing parallels between the mind's function and computer processes, emphasizing steps such as encoding, storing, and retrieving data.

Automatization

The process by which tasks and skills become automatic through repetition, requiring minimal conscious thought or effort.