The Annual Relevant Carrying Costs of Inventory Consists of the Sum

question 105

Multiple Choice

The annual relevant carrying costs of inventory consists of the sum of the:

• A)ordering costs and carrying costs
• B)stockout costs and carrying costs
• C)incremental costs plus the opportunity costs of capital
• D)incremental costs plus the carrying costs

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Definitions:

Lewis Structures

Diagrams that represent the valence electrons of atoms within a molecule, showing how they are bonded together.

Double Bond

A chemical bond in which two pairs of electrons are shared between two atoms.

Lewis Structure

A representation of molecules where symbols for elements are used to represent nuclei and inner-shell electrons, and dots or dashes between symbols represent electron pairs forming covalent bonds.

Ammonia

A colorless gas with a distinct sharp smell, composed of nitrogen and hydrogen (NH3), used as a fertilizer, in cleaning products, and in the synthesis of various chemicals.