Which of the following would not be included in inventory carrying cost?
A) Insurance expense for the inventory
B) Opportunity cost of capital for inventory investment
C) Cost of inventory
D) Cost of shelf space

Question

Quizplus · Accepted Answer

The cost of inventory itself is not considered a carrying cost since it is the item being tracked and accounted for within inventory management. The other options, insurance expense, opportunity cost of capital, and cost of shelf space, are all common inventory carrying costs.

Which of the Following Would Not Be Included in Inventory