Which of the following is not considered a significant inventory cost?
A)cost of production labor
B)purchase cost
C)cost of stockouts
D)cost of carrying an item

Question

Quizplus · Accepted Answer

Cost of production labor is a cost of producing goods, not a cost of holding inventory. B, C, and D are all significant inventory costs. Purchase cost is the cost of acquiring inventory, cost of stockouts is the cost of not having enough inventory, and cost of carrying an item is the cost of holding inventory, including storage, handling, and insurance.

Which of the Following Is Not Considered a Significant Inventory