Holding costs can be expressed as ______.
A)the total carrying cost per unit per time period
B)the sum of setup costs and ordering costs
C)a hidden cost
D)proportional to manufacturing costs

Question

Quizplus · Accepted Answer

Holding costs are the costs associated with storing and maintaining inventory. These costs include storage costs, insurance, taxes, obsolescence, and the cost of capital tied up in inventory. The total carrying cost per unit per time period is a common way to express holding costs.

Holding Costs Can Be Expressed as ______