The cost of holding a commodity from one period to another is known as:
A)carrying cost.
B)commodity cost.
C)holding cost.
D)exercise cost.

Question

Quizplus · Accepted Answer

Carrying cost refers to the expenses incurred in holding a commodity from one period to another, which may include storage, insurance, and financing costs. The other options, commodity cost, holding cost, and exercise cost, do not accurately reflect the specific cost incurred in holding a commodity.

The Cost of Holding a Commodity from One Period to Another