The relevant ordering costs are added into relevant carrying costs to calculate __________?
Correct answer: A. relevant total costs
- A. relevant total costs
- B. contribution costs
- C. throughput costs
- D. optimized costs
Explanation
Relevant total cost in inventory decisions combines relevant ordering costs with relevant carrying or holding costs. Contribution and throughput costs are different analysis concepts.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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