1 .		A(n) _____ cost is one that includes receiving and inspection items. [Hint]   purchasing   ordering   carrying   stockout
2 .		______ is an example of a purchasing cost. [Hint]   Freight-in   Inspection   Obsolescence   Lost contribution margin
3 .		Storage costs incurred by the firm are an example of a(n) _____ cost. [Hint]   purchasing   ordering   carrying   quality
4 .		A(n) _____ cost is incurred when the company runs out of a particular item which the customer has demanded. [Hint]   purchasing   ordering   carrying   stockout
5 .		A(n) _____ cost is one that occurs when the features of the product are not in conformity with the customer specifications. [Hint]   ordering   quality   carrying   stockout
6 .		Appraisal costs are an example of a(n) _____ cost. [Hint]   quality   purchasing   ordering   stockout
7 .		Dirt Farms stock fertilizer stakes to sell. These stakes are used with both indoor and outdoor flowering plants. Dirt Farms purchases the stakes from Feeder, a high quality plant food seller. Dirt Farms sells 500 packages of stakes each week (or 26,000 per year). A package costs Dirt Farms 50 cents. It takes 3 weeks for Dirt Farms to receive the stakes after it orders them. Dirt Farms needs a 12% annual return on investment. Relevant ordering costs per shipment are $25. The costs of storage, insurance, etc., is 10 cents per package.Given this cost structure, the firm will need _____ deliveries per year. [Hint]   9.12   13.55   17.33   26
8 .		Dirt Farms stock fertilizer stakes to sell. These stakes are used with both indoor and outdoor flowering plants. Dirt Farms purchases the stakes from Feeder, a high quality plant food seller. Dirt Farms sells 500 packages of stakes each week (or 26,000 per year). A package costs Dirt Farms 50 cents. It takes 3 weeks for Dirt Farms to receive the stakes after it orders them. Dirt Farms needs a 12% annual return on investment. Relevant ordering costs per shipment are $25. The costs of storage, insurance, etc., is 10 cents per package. Assuming that the EOQ amount is always ordered, _____ will be the annual relevant ordering costs for fertilizer stakes for Dirt Farms. [Hint]   $25   $228   334.75   $433.25
9 .		Dirt Farms stock fertilizer stakes to sell. These stakes are used with both indoor and outdoor flowering plants. Dirt Farms purchases the stakes from Feeder, a high quality plant food seller. Dirt Farms sells 500 packages of stakes each week (or 26,000 per year). A package costs Dirt Farms 50 cents. It takes 3 weeks for Dirt Farms to receive the stakes after it orders them. Dirt Farms needs a 12% annual return on investment. Relevant ordering costs per shipment are $25. The costs of storage, insurance, etc., is 10 cents per package. Assuming that the EOQ amount is always ordered, _____ will be the annual relevant carrying costs for fertilizer stakes for Dirt Farms. [Hint]   $180   $228   $361   $456
10 .		The carrying cost component, ______ ,is often not included in evaluating managers' performance and therefore will lead them to make less than optimal purchasing quantity decisions. [Hint]   storage   insurance   required return   obsolescence