The costs of storage space owned are always relevant costs of carrying inventory.

Name: The costs of storage space owned are always relevant costs of carrying inventory.
Brand: Quizplus
Rating: 4.9 (34 reviews)

Question

Quizplus · Accepted Answer

The costs of storage space owned that cannot be used for other profitable purposes when inventories decrease are irrelevant costs of carrying inventory. But if the space has other profitable uses or if total rental cost is tied to the amount of space occupied, storage costs are relevant costs of carrying inventory.

The Costs of Storage Space Owned Are Always Relevant Costs