Carrying Costs

question 74

Multiple Choice

Carrying costs

• A)the costs of not having a product available when demanded by a customer
• B)the costs of carrying inventory
• C)approach that maintains goods should be pulled through the system by present demand
• D)the number of units in the order quantity that minimizes the total cost
• E)the costs of placing and receiving an order

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Definitions:

Transaction

A financial event that changes the balance of two or more accounts.

Debt Ratio

Debt ratio is a financial ratio that measures the extent of a company's leverage by comparing its total debt to its total assets.

Total Liabilities

The combined amount of all financial obligations a company owes to external parties, recorded on the balance sheet.

Total Assets

The sum of all assets owned by a company, including current and non-current assets, as reported on the balance sheet.