Which of the Following Is an Example of an Ordinary

question 2

Multiple Choice

Which of the following is an example of an ordinary unsecured creditor?

• A) Liquidator's remuneration.
• B) Workers' injury compensation claims.
• C) Trade creditors.
• D) Retrenchment payments payable to employees of the company other than a director or a relative of a director.

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Definitions:

Setup Cost

The expenses incurred to prepare equipment, processes, or systems for manufacturing an order or batch of product.

Carrying Cost

The total cost of holding inventory, including storage, handling, insurance, and opportunity costs, over a certain period of time.

Safety Stock

Additional inventory held to protect against variability in demand or supply, ensuring that stockouts are minimized and service levels are maintained.

Lead Time

The total period needed to fulfill an order from the moment it is placed until it is delivered to the customer.