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-int-process inspections
___j. costs that result from misclassifications and clerical errors