Which inventory cost can include insurance,inventory taxes,and obsolescence?
A)the ordering cost
B)the carrying cost
C)the stockout cost
D)the setup cost

Question

Quizplus · Accepted Answer

Carrying cost includes all costs associated with holding inventory such as insurance, inventory taxes, and obsolescence. Ordering cost is the cost associated with placing the order for inventory. Stockout cost is the cost associated with running out of inventory and losing sales. Setup cost is the cost associated with preparing a production machine to produce a different item.

Which Inventory Cost Can Include Insurance,inventory Taxes,and Obsolescence