If inventory consists of goods produced internally,what are the inventory-related costs?
A)ordering and production costs
B)setup costs and carrying costs
C)ordering and setup costs
D)production and carrying costs

Question

Quizplus · Accepted Answer

For goods produced internally, the inventory-related costs consist of setup costs (costs associated with preparing the production line for a new production run) and carrying costs (holding costs for inventory, such as storage and insurance costs). Ordering costs and production costs are more applicable to goods that are purchased from outside sources.

If Inventory Consists of Goods Produced Internally,what Are the Inventory-Related