Which of the Following Statements Is True of Relevant Inventory

question 50

Multiple Choice

Which of the following statements is true of relevant inventory costs?

• A) The salaries paid to clerks, stock keepers, and materials handlers are relevant carrying costs if they are unaffected by changes in inventory levels.
• B) The costs of expediting an order from a supplier are relevant incremental costs of stockouts.
• C) Warehouse rent, warehouse workers' salaries and costs of insurance, that change with the quantity of inventory held are irrelevant carrying costs.
• D) Those ordering costs that change with the number of orders placed are irrelevant ordering costs.

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Definitions:

Premenstrual Dysphoric Disorder

A set of symptoms occurring immediately prior to onset of menses characterized by a mixture of depression, anxiety and tension, and irritability and anger; may occur in mood swings during the week before onset of menses and subside once menses has begun.

Depressive Disorders

A set of disorders characterized by depressed mood and/or anhedonia (and not mania).

Distinguishes

Sets apart or identifies as different or unique through comparison or analysis.

Theories

Systematically organized sets of concepts that explain phenomena observed in the natural or social worlds.