Which of the following is NOT a cost associated with holding inventory?
A)Money tied up in holding inventory is not available for other purposes.
B)Inventory generates storage and insurance costs.
C)The ability to meet a surge in demand for the goods carried in inventory.
D)Items in inventory may become obsolete and unsellable at a profitable price.

Question

Quizplus · Accepted Answer

The ability to meet a surge in demand for the goods carried in inventory is actually a benefit of holding inventory, not a cost. The other three options are all costs associated with holding inventory.

Which of the Following Is NOT a Cost Associated with Holding