Six categories of costs associated with inventories are purchasing costs, ordering costs, carrying costs, stock out...

Six categories of costs associated with inventories are purchasing costs, ordering costs, carrying costs, stock out costs, quality costs, and shrinkage. Assume you are seasoned manager training new employees about the importance of inventory management. In 200 words or more, describe at least two of these inventory costs. Include specific examples in order to effectively explain these concepts.

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ekkarill92 answered 1 year ago

List and describe the types of carrying costs and ordering costs?

7. The costs of carrying inventory include all of the following except: * a- Ordering costs....

7. The costs of carrying inventory include all of the following except: * a- Ordering costs. b- Cost of warehouse space. c- Insurance and handling costs. d- Interest on funds tied up in inventory. e- None of the above. 8. Once the break-even point is reached: * a- The contribution margin ratio begins to decrease. b- The variable expenses will remain constant in total. c- The total contribution margin changes from negative to positive. d- The net operating income will...

1- Inventory costs include all of these: purchase costs, holding or carrying costs, and ordering costs....

1- Inventory costs include all of these: purchase costs, holding or carrying costs, and ordering costs. T. True F. False 2- The Economic Order Quantity (EOQ) model tells us........ A. how much to order B. which are higher - holding or ordering costs C. how to use price discounts D. when to order 3- When tracking or counting inventory items, we should focus on which items most? A. A-items B. B-items C. C-items D. D-tems 4- The Economic Order Quantity...

1- Inventory costs include all of these: purchase costs, holding or carrying costs, and ordering costs....

1- Inventory costs include all of these: purchase costs, holding or carrying costs, and ordering costs. T. True F. False 2- The Economic Order Quantity (EOQ) model tells us........ A. how much to order B. which are higher - holding or ordering costs C. how to use price discounts D. when to order 3- When tracking or counting inventory items, we should focus on which items most? A. A-items B. B-items C. C-items D. D-tems 4- The Economic Order Quantity...

Which of the following generates pressure to increase inventories? A) inventory holding costs B) ordering costs...

Which of the following generates pressure to increase inventories? A) inventory holding costs B) ordering costs C) storage and handling costs D) taxes and insurance

Discuss the assumptions that are inherent in production setup cost, ordering cost and carrying costs. How...

Discuss the assumptions that are inherent in production setup cost, ordering cost and carrying costs. How valid are they?

Define components of inventory carrying costs? Identifysome of these components and their associated costs.Identify...

Define components of inventory carrying costs? Identify some of these components and their associated costs.Identify different types of inventory. Give examples of each.What is the purpose of carrying inventory? Is inventory a good thing or a bad thing?

Management has decided to reduce direct material and ordering costs by purchasing sub-assembled components and not...

Management has decided to reduce direct material and ordering costs by purchasing sub-assembled components and not individual parts. you must do the following. Current Changes Manufacturing costs Information for 100,000 units Revised Manufacturing costs Information for 100,000 units Cost Category Cost Driver Cost Driver Qty Budget units per cost driver Budget Total Qty Budgeted cost per unit Budget cost driver QTY Budget units per cost driver Budget Total Qty Budgeted Cost per unit of Cost Driver Revised Total Direct Material...

A firm is considering purchasing a machine that costs $69,000. It will be used for six...

A firm is considering purchasing a machine that costs $69,000. It will be used for six years, and the salvage value at that time is expected to be zero. The machine will save $42,000 per year in labor, but it will incur $10,000 in operating and maintenance costs each year. The machine will be depreciated according to five-year MACRS. The firm's tax rate is 35%, and its after-tax MARR is 11%. What is the present worth of the project?

What are the costs and benefits associated with compensating executives with stock or the option to...

What are the costs and benefits associated with compensating executives with stock or the option to purchase stock?

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Six categories of costs associated with inventories are purchasing costs, ordering costs, carrying costs, stock out...

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List and describe the types of carrying costs and ordering costs?

7. The costs of carrying inventory include all of the following except: * a- Ordering costs....

1- Inventory costs include all of these: purchase costs, holding or carrying costs, and ordering costs....

1- Inventory costs include all of these: purchase costs, holding or carrying costs, and ordering costs....

Which of the following generates pressure to increase inventories? A) inventory holding costs B) ordering costs...

Discuss the assumptions that are inherent in production setup cost, ordering cost and carrying costs. How...

Define components of inventory carrying costs? Identifysome of these components and their associated costs.Identify...

Management has decided to reduce direct material and ordering costs by purchasing sub-assembled components and not...

A firm is considering purchasing a machine that costs $69,000. It will be used for six...

What are the costs and benefits associated with compensating executives with stock or the option to...