Holding cost is the cost of carrying one unit in inventory for a specified period of time,usually one year.

Question

Quizplus · Accepted Answer

Holding cost is the cost that companies incur for storing inventory, including warehousing fees, the cost of taking inventory, and depreciation of goods. It is usually calculated as a percentage of the inventory value or as a fixed cost per unit. The holding cost is incurred over a specified period, typically one year, and is used to determine the economic order quantity and reorder point for inventory management.

Holding Cost Is the Cost of Carrying One Unit in Inventory