Which one of the following is not a carrying cost to holding inventory?
A) Risk of being short of inventory and unable to satisfy orders
B) Lost interest on funds tied up in inventory
C) Spoilage
D) Possible obsolescence

Question

Quizplus · Accepted Answer

Risk of being short of inventory and unable to satisfy orders is not a carrying cost, but a shortage cost. Carrying costs are the expenses incurred in holding inventory, such as lost interest on funds, spoilage, and possible obsolescence.

Which One of the Following Is Not a Carrying Cost