Which of the Following Is/are Direct Costs Associated with Inventory

question 21

Multiple Choice

Which of the following is/are direct costs associated with inventory? I. Acquisition costs
II. Carrying costs
III. Order costs

• A)I and II
• B)II and III
• C)I only
• D)I, II, and III

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Definitions:

Financing Activities

Transactions and events that affect the long-term liabilities and equity of a company, including issuing debt, issuing equity, and paying dividends.

Cash Flow

The net amount of cash and cash-equivalents being transferred into and out of a business, indicating the organization's liquidity.

Bond Principal

Bond principal, or face value, is the amount that the issuer agrees to pay the bondholder at maturity, excluding any interest payments.

Coupon Rate

The interest rate on a bond, determined as a percentage of the bond's face value, that the issuer promises to pay the bondholder annually.