Costs of the ﬁrm that rise with increased levels of investment in its current assets are called:

Question

Quizplus · Accepted Answer

Carrying costs are the costs associated with holding and managing inventory or other current assets, which increase as the level of investment in these assets increases. Shortage costs are associated with stockouts or shortages of inventory, order costs are the costs of placing and processing orders, safety costs are associated with maintaining a safe workplace or product, and trading costs are associated with buying and selling financial assets.

Costs of the ﬁRm That Rise with Increased Levels of Investment