All of the following are examples of carrying costs EXCEPT
A) rental payments on storage facilities where inventory is maintained.
B) the lost sale if the company runs out of a particular model.
C) the opportunity costs associated with having capital tied up in current assets instead of more productive fixed assets.
D) All of these choices are correct.

Question

Quizplus · Accepted Answer

Carrying costs are expenses related to holding or storing inventory, including storage fees, insurance, and opportunity costs, but not the cost of lost sales, which is considered a stockout cost.

All of the Following Are Examples of Carrying Costs EXCEPT