Average inventory carrying costs tend to rise in __________ to the level of the inventory.

Question

Quizplus · Accepted Answer

This means that as the level of inventory increases, so do the carrying costs. This is because larger inventories require more space, more labor to maintain, and may be subject to increased insurance costs. As a result, companies try to balance the benefit of having inventory on hand versus the cost of carrying that inventory.

Average Inventory Carrying Costs Tend to Rise in __________ to the Level