Which of the following is NOT a direct cost associated with inventory?
A)Acquisition costs
B)Order costs
C)Carrying costs
D)Stock out costs

Question

Quizplus · Accepted Answer

Stock out costs are indirect costs associated with inventory, as they result from not having enough inventory and missing out on potential sales or incurring additional costs to obtain the needed inventory quickly. Direct costs associated with inventory include acquisition costs (the actual cost of buying the inventory), order costs (the costs of placing and processing orders), and carrying costs (the costs of holding and storing inventory).

Which of the Following Is NOT a Direct Cost Associated