The costs of holding inventory include
A)carrying cost.
B)carrying cost and order cost.
C)insurance cost.
D)carrying cost, order cost, and insurance cost.

Question

Quizplus · Accepted Answer

The costs of holding inventory include carrying cost (costs associated with storing inventory, such as rent and utilities), order cost (costs associated with placing and receiving orders, such as shipping and handling fees), and insurance cost (costs associated with insuring the inventory against loss or damage). Therefore, the best choice is D.

The Costs of Holding Inventory Include