If inventory consists of goods produced internally, the inventory-related costs are
A) ordering and carrying costs.
B) setup costs and carrying costs.
C) ordering and setup costs.
D) both a and c.

Question

Quizplus · Accepted Answer

If inventory consists of goods produced internally, the inventory-related costs are typically setup costs and carrying costs. Ordering costs are typically incurred when goods are purchased externally.

If Inventory Consists of Goods Produced Internally, the Inventory-Related Costs