For each of the following costs, indicate whether the cost would be an outof-

pocket carrying cost (C) or a cost of placing an order (P). If the item does not qualify for either of these categories, note it as none of the above (N).

Assume that wages vary with the level of work while salaries are fixed for a monthly or longer time period.

a. Hourly fee for inventory audit.

b. Salary of purchasing supervisor.

c. Costs to audit purchase orders and invoices on a per order basis.

d. Taxes on inventory.

e. Stockout costs.

Storage costs charged per unit in inventory.

g. Fire insurance on inventory.

h. Fire insurance on warehouse.

/. Obsolescence costs on inventory.

j. Shipping costs per shipment.