What is the term for the cost of holding inventory?
A)ordering cost
B)setup cost
C)stock-out cost
D)carrying cost

Question

Quizplus · Accepted Answer

Carrying cost is the term used for the cost of holding inventory. It includes costs such as storage, handling, insurance, and obsolescence. Ordering cost refers to the cost of placing an order, setup cost represents the cost of preparing equipment for the production of a specific product, and stock-out cost is the cost of running out of inventory and potentially losing sales.

What Is the Term for the Cost of Holding Inventory