Components of what type of inventory cost

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Reference no: EM132144898

1. Professor Winifred Clayton has just read an article in Fortune magazine about issues in the Enron bankruptcy. She wishes to share it with her class that morning and makes 50 copies to distribute to them. Professor Clayton:

a. has infringed Fortune's copyright.

b. has utilized the fair use exemption under copyright law.

c. has done nothing in violation of copyright law because magazine articles are not protected under copyright law.

d. none of the above

2. The following are components of what type of inventory cost: finance charges, warehousing, and shelf space, handling equipment, bookkeeping, insurance, taxes or spoilage?

a. Total cost

b. Ordering cost

c. Holding cost

d. Maintenance cost

3. The manufacturers of several designer purses have met and agreed not to sell their purses to Bramble's Department Store because of Bramble's practice of discounting all items 20 percent below the retail costs at other stores. The manufacturers are concerned about maintaining their images of exclusivity and quality. The agreement among the manufacturers:

a. is valid because of their need to protect their product.

b. violates the Sherman Act because it is a boycott.

c. is valid because the rule of reason applies and they have a valid reason.

d. none of the above

4. SugarSpin manufactures a cotton candy machine. It will not sell its machine unless the buyer purchases at least five-dozen paper cones for holding the cotton candy. SugarSpin's requirement:

a. is an example of an exclusive dealing contract.

b. is a tying arrangement.

c. is a requirements contract.

d. none of the above

Reference no: EM132144898

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