The annual relevant carrying costs of inventory consists of the sum of the ________.
A) relevant ordering costs and the relevant costs of quality
B) relevant ordering costs plus the relevant opportunity costs of capital
C) relevant incremental costs plus the relevant opportunity costs of capital
D) relevant incremental costs plus the relevant ordering costs

Question

Quizplus · Accepted Answer

Carrying costs of inventory typically include the relevant incremental costs associated with holding inventory, such as storage, insurance, and taxes, as well as the relevant opportunity costs of capital tied up in inventory.

The Annual Relevant Carrying Costs of Inventory Consists of the Sum