The relevant costs in the aggregate production plan are raw material cost, labor
ID: 371643 • Letter: T
Question
The relevant costs in the aggregate production plan are
raw material cost, labor cost, production cost, transportation cost
marketing cost, production cost, development cost, cost of capital
production cost, cost of changing production level, inventory holding cost, back ordering cost
production cost, internal failure cost, external failure cost, warranty cost
a.raw material cost, labor cost, production cost, transportation cost
b.marketing cost, production cost, development cost, cost of capital
c.production cost, cost of changing production level, inventory holding cost, back ordering cost
d.production cost, internal failure cost, external failure cost, warranty cost
Explanation / Answer
Option C: Production cost, cost of changing production level, inventory holding cost, back ordering cost.
Relevant costs to aggregate production planning: