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:

Job Burnout

A state of physical or emotional exhaustion due to prolonged stress and frustration at work, often accompanied by feelings of reduced accomplishment and loss of personal identity.

Depersonalization

A psychological condition in which a person feels detached from their own thoughts, feelings, or sense of identity.

Lymphocytes

A type of white blood cell that is part of the immune system, playing a significant role in fighting infections and disease.

Immune System

The complex network of cells, tissues, and organs that work together to defend the body against infection, disease, and foreign substances.