The costs of holding inventory are generally classified into three groups.The three groups are:

Question

Quizplus · Accepted Answer

The costs of holding inventory are generally classified into three groups- acquisition costs, carrying costs, and stockout costs. Acquisition costs are the costs associated with obtaining the goods, carrying costs are the expenses incurred to hold and manage inventory, and stockout costs are the cost incurred due to a shortage of inventory. Therefore, option B is the correct answer. Option A and D are incorrect because 'stock costs' and 'freight costs' are not the standard categories of inventory costs. Option C is incorrect because it includes 'ordering costs' instead of 'stockout costs'.

The Costs of Holding Inventory Are Generally Classified into Three