Which category of inventory holding costs is much higher than average for rapid-change industries such as PCs and cell phones?
A) housing costs
B) material handling costs
C) labour cost
D) parts cost
E) pilferage, scrap, and obsolescence

Question

Quizplus · Accepted Answer

Rapid-change industries such as PCs and cell phones are characterized by short product lifecycles and frequent new product introductions. This leads to a higher likelihood of inventory becoming obsolete or unsellable, resulting in increased pilferage, scrap, and obsolescence costs. These costs can be much higher than the average for other industries.

Which Category of Inventory Holding Costs Is Much Higher Than