The cost of storing products until they are purchased or shipped to customers is called ____ cost.
A) overhead
B) dispatching
C) sorting
D) holding
E) processing

Question

Quizplus · Accepted Answer

Holding cost refers to the cost of storing products until they are purchased or shipped to customers. Overhead refers to all ongoing business expenses not directly tied to creating a specific product or service. Dispatching relates to the process of arranging for goods or people to be sent to a particular place. Sorting refers to the process of organizing items into categories or groups. Processing refers to the tasks involved in converting raw materials or inputs into finished products.

The Cost of Storing Products Until They Are Purchased or Shipped