Usually,the highest percentage of inventory carrying costs is the opportunity cost.

Question

Quizplus · Accepted Answer

Opportunity cost is the cost of forgoing the next best alternative, which means that if inventory is being held in stock, the opportunity cost is the revenue that could have been generated if the inventory was used for some other purpose. Therefore, the highest percentage of inventory carrying costs is usually the opportunity cost.

Usually,the Highest Percentage of Inventory Carrying Costs Is the Opportunity