In Managing Inventory,what Are the Costs of Goods Acquired from Suppliers

question 14

Multiple Choice

In managing inventory,what are the costs of goods acquired from suppliers including incoming freight or transportation costs known as?
Variant question

• A)Carrying costs
• B)Ordering costs
• C)Stockout costs
• D)Purchasing costs

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Definitions:

Operating Loss

The amount by which the operating expenses of a business exceed its gross profits.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, or insurance.

Materials Markup

The extra percentage added to the cost price of goods to cover overhead and profit when selling goods.

Labor Rate

The cost paid to labor per unit of time, often referred to as wage rate or hourly rate.