AMA MCQ FINAL

The costs of goods acquired from suppliers including incoming freight or transportation costs are:

• purchasing costs

• ordering costs

• stockout costs

• carrying costs

internal failure costs

• purchasing costs

• ordering costs

• stockout costs

• carrying costs

• quality cost

opportunity cost of the investment tied up in inventory

• purchasing costs

• ordering costs

• stockout costs

• carrying costs

• quality cost

spoilage of stored items

• purchasing costs

• ordering costs

• stockout costs

• carrying costs

• quality cost

costs of lost sales as a result of not having an item requested by a customer

• purchasing costs

• ordering costs

• stockout costs

• carrying costs

• quality cost

The costs of preparing, issuing, and paying purchase orders, plus receiving and inspecting the items included in orders is:

• purchasing costs

• ordering costs

• stockout costs

• carrying costs

costs of matching invoices received to the items and the purchase orders

• purchasing costs

• ordering costs

• stockout costs

• carrying costs

The costs that result from theft of inventory are:

• shrinkage costs

• external failure costs

• stockout costs

• costs of quality

costs of wages for work-in-process inspections

• shrinkage costs

• external failure costs

• stockout costs

• costs of quality

costs resulting from embezzlement by employees

• shrinkage costs

• external failure costs

• stockout costs

• costs of quality