A. stock-out costs
B. ordering costs
C. carrying costs
D. purchasing costs
Correct Answer: purchasing costs ✔
Last Updated: May 11, 2023
Related MCQs
- The relevant ordering costs are added into relevant carrying costs to calculate __________?
- The purchase order lead time is multiplied to the number of units sold per unit of time, to calculate __________?
- The reorder point is divided by number of sold units for per unit of time to calculate __________?
- The stage in manufacturing cycle at which journal entries are made in system of accountancy is known as _________?
- The costing system, which omits some of the journal entries in accounting system is known as __________?
- The relevant incremental costs are added into the relevant opportunity cost of capital to calculate __________?
- An average inventory in units is multiplied with annual relevant carrying cost of each unit to calculate __________?
- If the demand in units are 18000, relevant ordering cost for each year is $150 and an order quantity is 1500, then annual relevant ordering cost would be __________?
- The systematic flow of services, goods or information from the buying material for product delivery to the customers is known as __________?
- The required rate of return, is multiplied per unit cost of purchased units to calculate __________?
- The cost of product failure, error prevention and appraisals can be classified under __________?
- If an average inventory is 2000 units, annual relevant carrying cost of each unit is $5, then the annual relevant carrying cost will be __________?
- Which of the following is an example of purchasing costs?
- If the demand of one year is 25000 units, relevant ordering cost for each purchase order is $210, carrying cost of one unit of stock is $25 then the economic order quantity will be __________?
- The activities related to coordinating, controlling and planning flow of inventory are classified as __________?
- The profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as __________?
- If the relevant incremental costs are $5000 and the relevant opportunity cost of invested capital is $2500, then the relevant inventory carrying costs would be __________?
- The number of purchase orders for each year is multiplied to relevant ordering cost for each purchase order to calculate __________?
- The method of costing that supports creation of value for customer by accounting whole value stream, rather than individual departments or products is classified as __________?
- If the purchase order lead time is 35 minutes and number of units sold per time is 400 units, then reorder point will be __________?
- The costs of issuing purchase orders, making of delivery records for tracking payments and costs of inspection of items are classified as __________?
- Buying of goods or materials for production in a way that they are delivered directly on the manufacturing facility of company is called __________?
- If the required rate of return is 12% and the per unit cost of units purchased is $35, then the relevant opportunity cost of capital will be __________?
- The decision model to calculate optimal quantity of inventory to be ordered is called __________?
- If the economic order quantity for one year is 15000 packages and demand in units for one year are 1500 units, then number of deliveries in a year will be __________?
- A push through system, according to which goods are manufactured for finished inventory solely, on the basis of forecasted demand can be classified as __________?
- An example of shrinkage costs is __________?
- If the relevant opportunity cost of capital is $2950 and the relevant carrying cost of inventory is $6700, then the relevant incremental cost will be __________?
- The costs associated with storage of finished goods such as spoilage, obsolescence and insurance of goods are classified as __________?
- An ability of an accounting system, to point out the use of resources in every step of production process is called __________?