What factors below have a direct effect on carrying costs?
A)pilferage
B)obsolescence
C)deterioration
D)damage
E)all of the above

Question

Quizplus · Accepted Answer

All of the factors listed have a direct effect on carrying costs. Pilferage increases the cost of inventory due to theft and replacement. Obsolescence occurs when products become outdated or overstocked, leading to markdowns or disposal costs. Deterioration includes damage from natural causes and changes in temperature or humidity, which can result in loss of value or spoilage. Damage can occur during transportation, handling, or storage, leading to repairs, replacements, or write-offs. All of these factors add to the cost of carrying inventory, making it more expensive to hold onto and manage.

What Factors Below Have a Direct Effect on Carrying Costs