Each of the following is a component of inventory carrying cost except:
A)accounting cost.
B)storage cost.
C)shrinkage cost.
D)interest cost.

Question

Quizplus · Accepted Answer

Accounting cost is not considered a component of inventory carrying cost. Inventory carrying costs typically include storage costs (such as warehousing and materials handling), shrinkage cost (loss of inventory due to theft, damage, or obsolescence), and interest cost (the cost of capital tied up in inventory). Accounting costs, while related to managing finances, are not directly tied to the physical holding or maintenance of inventory.

Each of the Following Is a Component of Inventory Carrying