Answer the Following Question(s)using the Information Below

question 64

Multiple Choice

Answer the following question(s) using the information below:
The following information has been gathered for Product A:

-What are the major relevant costs in maintaining safety stock?

• A)carrying costs and purchasing costs
• B)ordering costs and purchasing costs
• C)ordering costs and stockout costs
• D)stockout costs and carrying costs
• E)stockout costs and purchasing costs

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Definitions:

Product Cost

The total expense incurred to manufacture or acquire a product, including direct materials, labor, and overhead costs.

Depreciation

An accounting method of allocating the cost of a tangible or physical asset over its useful life, representing the asset's wear and tear over time.

Store Equipment

Tangible assets used in a retail business's operations, such as cash registers, shelving, and display cases.

Period Cost

Costs that are not directly associated with the production of goods and are expensed in the period they are incurred.