annual irrelevant ordering costs
annual relevant carrying costs
annual relevant ordering costs
annual irrelevant carrying costs
✅ The correct answer is B.
An average inventory in units is multiplied with annual relevant carrying cost of each unit to calculate annual relevant carrying costs. Carrying costs are the costs of holding inventory and include maintenance, specifically in regard to perishable items, and storage costs.
An average inventory in units is multiplied with annual relevant carrying cost of each unit to calculate annual relevant carrying costs. Carrying costs are the costs of holding inventory and include maintenance, specifically in regard to perishable items, and storage costs.