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Inventory Cost: Definition, Methods & Types

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Which of the following is NOT an element of inventory costs?

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1. Which of the following activities incur ordering costs?

2. Leno's Tux Boutique is in dire need of additional blue bow ties for the start of wedding season. He has to quickly order more for his inventory. Which of the following would NOT incur a shortage cost for the business?

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About This Quiz & Worksheet

There is much to consider when calculating inventory cost, and this quiz and worksheet will allow you to test your understanding of inventory, ordering, and carrying costs, as well as the cost of goods sold.

Quiz & Worksheet Goals

In these assessments, you'll be tested specifically on:

  • Inventory costs
  • Ordering costs
  • Shortage costs
  • Cost of goods sold

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information regarding inventory costs from the related lesson
  • Critical thinking - apply relevant concepts to examine information about costs in a different light
  • Knowledge application - use your knowledge to answer questions about the different types of costs

Additional Learning

If you are interested in learning more, check out the lesson called Inventory Cost: Definition, Methods & Types. This lesson covers the following objectives:

  • Understand storage space costs
  • Review real-life scenarios and dollar figures that companies must take into account
  • Understand how the cost of goods sold is calculated
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