Which of the Following Does NOT Contribute to Total Inventory

question 133

Multiple Choice

Which of the following does NOT contribute to total inventory cost?

• A) Costs of damage to products while in inventory.
• B) Costs of risks such as theft and fire.
• C) Costs of inventory becoming obsolete.
• D) Increase in the value of goods.
• E) Handling costs.

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Definitions:

Marginal Revenue Product

The extra income produced by using an additional unit of a resource, like labor or capital.

Purely Competitive

A market structure characterized by many buyers and sellers, free entry and exit, and a homogeneous product, leading to price taking by firms.

Marginal Product

The additional output resulting from the use of one more unit of a factor of production.

Marginal Product

The marginal product is the additional output produced as a result of adding one more unit of a specific input, keeping other inputs constant.