Managing Inventories to Increase Net Income Requires Companies to Effectively

question 23

Essay

Managing inventories to increase net income requires companies to effectively manage costs associated with goods for sale.
Required:
Classify the below listed items as either Purchasing Costs,Ordering Costs,Carrying Costs,Stockout Costs,Costs of Quality,or Shrinkage Costs.
___a. costs of obtaining purchase approvals
___b. costs resulting from embezzlement by employees
___c. internal failure costs
___d. opportunity cost of the investment tied up in inventory
___e. costs associated with storage
___f. costs of lost sales as a result of not having an item requested by a customer
___g. freight-in charges
___h. special processing costs
___i. costs of wages for work-int-process inspections
___j. costs that result from misclassifications and clerical errors

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Definitions:

Columnar Style

Refers to a layout or format where data or information is organized in vertical columns, often used in spreadsheets or reports.

Alert Window

A pop-up notification that appears on a computer screen to inform the user about a system event, error, or other important message.

Calendar Item

An entry in a calendar that represents an appointment, meeting, or any scheduled activity.

Appointment

A scheduled meeting or arrangement, especially professional or social, at a specific time and place.