Which of the following is an element of inventory holding costs?
A) housing costs
B) material handling costs
C) investment costs
D) pilferage, scrap, and obsolescence
E) All of these are elements of inventory holding costs.

Question

Quizplus · Accepted Answer

All of these are elements of inventory holding costs. Housing costs include storage and warehouse costs, material handling costs include the costs associated with receiving, storing, and moving materials in inventory, investment costs include the cost of capital tied up in inventory, and pilferage, scrap, and obsolescence are all costs associated with damaged, outdated, or unused inventory.

Which of the Following Is an Element of Inventory Holding