A company carries an average annual inventory of $1,000,000. If the cost of capital is 10%, storage
costs are 8%, and risk costs are 7%, what does it cost per year to carry this inventory?
A) $100,000
B) $70,000
C) $80,000
D) $250,000
E) cannot be determined from the data given
D
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________ is another form of word of mouth that encourages consumers to pass along company-developed products and services or audio, video, or written information to others online
A) Buzz marketing B) Viral marketing C) Guerrilla marketing D) Motivational marketing E) Internal marketing
Which of the following is not a potential fraud related to stockholders' equity accounts?
a. Stock sales or issuances are not authorized. b. Entire loan payments are charged to either principal or interest. c. Dividends are paid in violation of restrictive covenants. d. Stock options are back-dated.
________ is a term that denotes the return of goods or property received from the other party to undo a contract
A) Rescission B) Recession C) Restitution D) Retribution
The failure of many auditing firms to raise red flags about accounting irregularities in companies such as Enron and WorldCom is generally attributed to all the following factors except the
A. fact that auditors are appointed by the firm. B. desire to get future auditing contracts from the company. C. desire to get consulting work from the company because most audit firms also do consulting work. D. failure of U.S. audit firms to hire technically qualified professionals.