Use the following to answer questions:
Scenario 12-2. Jeremy's Jewels is a retail store that specializes in medium-quality, medium-priced jewelry. It is located in a mall in downtown Yosako, Kansas. Jeremy is concerned about his inventory costs. He has several questions concerning purchasing, choosing suppliers, and how much inventory he actually needs. Lately, his cash flow has been severely strained due to the fact too much cash is being tied up in inventory. Jeremy is currently the only employee of his small business.
-In Scenario 12-2 above, all but which of the following are costs of carrying inventory that Jeremy must consider?

Question

Quizplus · Accepted Answer

Sales costs are not a cost of carrying inventory; they are related to the process of actually selling the inventory. The costs of carrying inventory that Jeremy must consider include financing costs, holding costs (such as storage and insurance), and ordering costs (such as the cost of placing orders with suppliers and processing them).

Use the Following to Answer Questions