_____ are calculated as Average Inventory in Units x Unit Price x Carrying Cost per Year.
A)Quality costs
B)Ordering costs
C)Inventory carrying costs
D)MRO costs
E)Cycle counting costs

Question

_____ are calculated as Average Inventory in Units x Unit Price x Carrying Cost per Year.
A)Quality costs
B)Ordering costs
C)Inventory carrying costs​
D)MRO costs
E)Cycle counting costs

Quizplus · Accepted Answer

These are the formula for calculating inventory carrying costs. Quality costs are costs associated with preventing, detecting and correcting defects in products. Ordering costs are the costs associated with placing and receiving orders, while MRO costs are associated with maintenance, repair and operating supplies. Cycle counting costs are associated with regularly counting and reconciling inventory to ensure accuracy.

_____ Are Calculated as Average Inventory in Units X Unit