A company keeps 60 days of materials inventory on hand to, Financial Accounting

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A company keeps 60 days of materials inventory on hand to

A company keeps 60 days of materials inventory on hand to avoid shutdowns due to materials shortages. Carrying costs average $5,000 per day. A competitor keeps 30 days of inventory on hand, and the competitor's carrying costs average $2,000 per day. The non-value-added costs for the company are

a. $300,000.

b. $150,000.

c. $60,000.

d. $0.

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Financial Accounting: A company keeps 60 days of materials inventory on hand to

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Financial Accounting: A company keeps 60 days of materials inventory on hand to

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