Cost Accounting, 14e, Global Edition (Horngren/Datar/Rajan)
Chapter 20 Inventory Management, Just-in-Time, and Simplified Costing Methods
Objective 20.1
1) Which of the following industries would have the highest cost of goods sold percentage relative to
sales?
A) computer manufacturers
B) retail organizations
C) drug manufacturers
D) The percentage will usually depend on the success of a particular company.
Answer: B
Diff: 2
Terms: inventory management
Objective: 1
AACSB: Reflective thinking
2) The costs of goods acquired from suppliers including incoming freight or transportation costs are:
A) purchasing costs
B) ordering costs
C) stockout costs
D) carrying costs
Answer: A
Diff: 2
Terms: purchasing costs
Objective: 1
AACSB: Reflective thinking
3) The costs of preparing, issuing, and paying purchase orders, plus receiving and inspecting the items
included in orders is:
A) purchasing costs
B) ordering costs
C) stockout costs
D) carrying costs
Answer: B
Diff: 2
Terms: ordering costs
Objective: 1
AACSB: Reflective thinking
1
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