Multiple Choice
Which of the following statements is true of relevant inventory costs?
A) The salaries paid to clerks, stock keepers, and materials handlers are relevant carrying costs if they are unaffected by changes in inventory levels.
B) The costs of expediting an order from a supplier are relevant incremental costs of stockouts.
C) Warehouse rent, warehouse workers' salaries and costs of insurance, that change with the quantity of inventory held are irrelevant carrying costs.
D) Those ordering costs that change with the number of orders placed are irrelevant ordering costs.
Correct Answer:

Verified
Correct Answer:
Verified
Q45: Globe Inc. is a distributor of DVDs.
Q46: The Jarvis Corporation produces bucket loader assemblies
Q47: Just-in-time purchasing describes the flow of goods,
Q48: The economic order quantity model completely ignores
Q49: The demand-pull feature of JIT production systems
Q51: A successful implementation of a JIT production
Q52: In a just-in-time system, suppliers are selected
Q53: Which of the following statements is true
Q54: Why do conflicts arise between the EOQ
Q55: The management accountant aids in MRP by