Which of the following is NOT considered a carrying cost?
A)insurance on the inventory
B)the opportunity cost of funds invested in inventory
C)storage costs
D)receiving costs

Question

Quizplus · Accepted Answer

Receiving costs are not considered a carrying cost. Carrying costs refer to the expenses incurred in holding and storing inventory, such as insurance, storage, and opportunity cost of invested funds. Receiving costs, on the other hand, are associated with the process of receiving and inspecting inventory when it arrives at a facility.

Which of the Following Is NOT Considered a Carrying Cost