Pilferage, obsolescence, and insurance costs are all elements of this cost category.
A) staffing
B) backorder and stockout
C) production
D) inventory holding

Question

Quizplus · Accepted Answer

Pilferage (theft), obsolescence (items that can no longer be sold due to becoming outdated or expired), and insurance costs (the cost of insuring inventory against damage or loss) are all costs associated with holding inventory, which is why the correct choice is D) inventory holding. Staffing costs relate to the expenses incurred in paying employees, production costs relate to the expenses related to manufacturing products, and backorder/stockout costs are related to lost sales or delayed shipments.

Pilferage, Obsolescence, and Insurance Costs Are All Elements of This