Which of the following is an example of a carrying cost of holding an inventory?
A)the costs of securing the inventory
B)the delivery charges for an order
C)the managerial time spent creating an order for inventory
D)the cost of the paperwork necessary to pay for each order

Question

Quizplus · Accepted Answer

Carrying costs are expenses incurred by a company for holding inventory in stock. These costs can include storage, insurance, labor, equipment maintenance, interest on financing, and other related costs. The cost of securing the inventory falls under the category of storage costs and are an example of carrying costs.

Which of the Following Is an Example of a Carrying