Which of the following factors is not included in carrying cost?
A)spoilage
B)obsolescence
C)cost of capital
D)inspecting incoming inventory

Question

Quizplus · Accepted Answer

Inspecting incoming inventory is typically considered a part of ordering cost rather than carrying cost. Carrying cost includes factors such as storage, insurance, taxes, and handling expenses associated with holding inventory. Spoilage, obsolescence, and cost of capital are all examples of carrying cost factors.

Which of the Following Factors Is Not Included in Carrying