Inventory Carrying Costs

Multiple Choice

Inventory carrying costs:

A) include the costs of generating memos, fax transmissions, etc. associated with placing an order with a supplier.
B) generally increase in proportion to the average amount of inventory held.
C) are fixed regardless of the average size of the inventory.
D) are equal to the sum of total inventory costs and total ordering costs.
E) are at maximum when a firm's order is equal to optimal quantity.