The profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as Options: A . &nbsprelevant purchase order costs B . &nbsprelevant inventory carrying costs C . &nbspirrelevant inventory carrying costs D . &nbsprelevant opportunity cost of capital

The profit forgone by capital investment in inventory rather than investment of

Question

The profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as

Options:

A . relevant purchase order costs

B . relevant inventory carrying costs

C . irrelevant inventory carrying costs

D . relevant opportunity cost of capital

Answer: Option D
Answer: (d).relevant opportunity cost of capital

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Question 1. If the relevant incremental costs are $5000 and the relevant opportunity cost of invested capital is $2500, then the rel....is $2500, then the relevant inventory carrying costs would be

Question 2. An example of shrinkage costs is....

Question 3. An average inventory in units is multiplied with annual relevant carrying cost of each unit to calculate....

Question 4. The relevant incremental costs are added into the relevant opportunity cost of capital to calculate....

Question 5. A push through system, according to which goods are manufactured for finished inventory solely, on the basis of forecast....on the basis of forecasted demand can be classified as

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Question 9. The purchase order lead time is multiplied to the number of units sold per unit of time, to calculate....

Question 10. The reorder point is divided by number of sold units for per unit of time to calculate....

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