Which of the following is an element of inventory holding costs?
A) housing costs
B) material handling costs
C) investment costs
D) pilferage, scrap, and obsolescence
E) All of the above are elements of inventory holding cost.

Question

Quizplus · Accepted Answer

All of the options listed are elements of inventory holding costs. Housing costs refer to the expenses associated with storing and maintaining inventory, material handling costs involve the expenses incurred when moving or handling inventory, investment costs come from the opportunity cost of tying up capital in inventory, and pilferage, scrap, and obsolescence refer to the losses incurred when inventory is lost, damaged, or becomes outdated.

Which of the Following Is an Element of Inventory Holding