Which costs should be considered when determining whether a firm should order enough to qualify for a volume discount?

1 answer:

4 0

Inventory costs should be considered to determine whether a firm should order enough to qualify for a volume discount.

Inventory costs consists of ordering costs, carrying costs and shortage costs. Inventory is an important asset for a company or a manufacturer. Ordering cost includes cost of purchase and the cost of inbound logistics. In order to minimize the ordering cost of inventory we make use of the concept of Economic Order Quantity.

Carrying cost of inventory refers to the cost sustained towards inventory storage and maintenance. Shortage costs and the cost of recovery are the costs that take place in unexpected circumstances. The costs which is involved in holding the inventory are called Holding Costs.

To achieve the volume discount a firm has to make big orders. Calculations and tracking of these inventory costs will enable the company whether they are able to manage such big orders to qualify for volume discount or not.

To learn more about inventory costs here

brainly.com/question/19633918

#SPJ4

You might be interested in

Which three approaches to management are considered historical perspectives?

cestrela7 [59]

The three approaches to management which are considered to be historical perspectives are:
1. The classical view point: this emphasize finding ways to manage work more efficiently.
2. The behavioral view point: emphasize the need to understand human behavior and to encourage employees toward achieving the company's goals.
3. The quantitative view point: this emphasizes the application of quantitative measures to management.<span />

7 0

3 years ago

People are going to be different. The focus of managers should be to ________. Group of answer choices make sure the practices w

Solnce55 [7]

Answer:

find ways to develop strong relationships with and engage the entire workforce.

Explanation:

People are going to be different. The focus of managers should be to find ways to develop strong relationships with and engage the entire workforce.

A manager can be defined as an individual who is saddled with the responsibility of providing guidance, support, supervision, administrative control, as well as acting as a role model or example to the employees working in an organization by being morally upright.

Generally, managers are typically involved in taking up leadership roles and as such are expected to be build a strong relationship between their employees or subordinates by creating a fair ground for effective communication and sharing of resources and information. Also, they are required to engage their staff members (entire workforce) in the most efficient and effective manner.

5 0

3 years ago

Nina, a manager, is considering reducing the workforce to cut down on costs. She realizes that this decision will have a huge im

Pani-rosa [81]

Answer:

The correct answer is: Moral awareness.

Explanation:

Moral awareness refers to the set of actions individuals take driven by values and beliefs that drive them not to only think about themselves but also in the consequences on others. In business, companies need to consider what the impact of their actions is with their surrounding environment and their inner circle -employees.

7 0

3 years ago

How do fixed costs per unit behave?

ipn [44]

83974875687168756574150674564736%

7 0

4 years ago

Hank is a U.S. citizen and is doing a three to six-year assignment as a sales executive in Paris for a French company, which beg

Maurinko [17]

Answer:

The answer is: E) None of his salary can be excluded from gross income because Hank must reside overseas for the entire year

Explanation:

According to the IRS's Foreign Earned Income Exclusion (and Requirements) a US citizen can claim up to $105,900 (in 2019) of his gross income to be excluded from gross income in the US only if that person resided in the foreign country for at least 330 days in the last year.

3 0

4 years ago