Taxes and insurance would fall under ________ costs.

Question

Quizplus · Accepted Answer

Taxes and insurance are considered holding or carrying costs, as they are expenses incurred while maintaining and storing inventory. Ordering costs are the expenses associated with placing an order for inventory, receiving and inspection costs are expenses for verifying the accuracy and quality of inventory upon delivery, and shortage costs are expenses for stockouts or not having enough inventory to meet demand.

Taxes and Insurance Would Fall Under ________ Costs