Managing inventories to increase net income requires companies to effectively manage costs associated with goods for sale. Identify the items below as to the class of costs they best represent.

1. Purchasing costs
2. Ordering costs
3. Carrying costs
4. Stockout costs
5. Costs of quality
6. Shrinkage costs

a. __________Costs of obtaining purchase approvals

b.___________Costs resulting from embezzlement caused by employees

c.___________ Internal failure costs

d.___________Opportunity cost of the investment tied up in inventory

e.___________Spoilage of stored items

f.____________Costs of lost sales a result of not having an item requested by a customer

g.____________Costs of incoming freight

h.___________ Costs of matching invoices received to the items and the purchase orders

i. ____________Cost of wages for work-in-process inspections

j._____________Costs that result from clerical errors