A company has 19 days of finished goods inventory on hand to avoid stockouts. The carrying costs of the inventory average $6,000 per day. The value-added costs would be
A)$100,000.
B)$-0-.
C)$5,000.
D)$10,000.

Question

Quizplus · Accepted Answer

Since the question only asks for the value-added costs, we can ignore the carrying costs. Therefore, the value-added costs would be $0 since the question does not mention any specific costs related to the inventory.

A Company Has 19 Days of Finished Goods Inventory on Hand