Cost managment∶accounting and control 第二十一章解答手册.docVIP

PAGE PAGE 480 CHAPTER 21inventory management: economic order quantity, jit, and the theory of constraints questions for writing and discussion 1. Ordering costs are the costs of placing and receiving an order. Examples include clerical costs, documents, and unloading. Setup costs are the costs of preparing equipment and facilities so that they can be used for producing a product or component. Examples include wages of idled production workers, lost income, and the costs of test runs. Carrying costs are the costs of carrying inventory. Examples include insurance, taxes, handling costs, a