Which of the following is not a direct financial cost of inventory?
A) cost of utilities
B) opportunity cost of capital locked up in inventory
C) interest paid on capital
D) All of the above are direct financial costs of inventory.

Question

Quizplus · Accepted Answer

The cost of utilities is not a direct financial cost of inventory. Direct financial costs of inventory are costs that are specifically related to holding and managing inventory, such as the opportunity cost of capital locked up in inventory and the interest paid on capital.

Which of the Following Is Not a Direct Financial Cost