Managing Inventories to Increase Net Income Requires Companies to Effectively

Essay

Managing inventories to increase net income requires companies to effectively manage costs associated with goods for sale.
Required:
Classify the below listed items as either Purchasing Costs, Ordering Costs, Carrying Costs, Stockout Costs, Costs of Quality, or Shrinkage Costs.
________a.costs of obtaining purchase approvals
________b.costs resulting from embezzlement by employees
________c.internal failure costs
________d.opportunity cost of the investment tied up in inventory
________e.costs associated with storage
________f.costs of lost sales as a result of not having an item requested by a customer
________g.freight-in charges
________h.special processing costs
________i.costs of wages for work-in-process inspections
________j.costs that result from misclassifications and clerical errors