The following pairs are all costs of holding inventory except:
A)storage and insurance.
B)obsolescence and inventory financing.
C)handling and spoilage.
D)purchase price and overhead.

Question

Quizplus · Accepted Answer

Purchase price and overhead are not costs associated with holding inventory, but rather costs associated with the acquisition of inventory. The other options listed - storage and insurance, obsolescence and inventory financing, and handling and spoilage - are all costs that come with the actual physical holding and management of inventory.

The Following Pairs Are All Costs of Holding Inventory Except