Inventory insurance costs are an example of ________ costs.
A) order
B) marginal
C) carrying
D) total

Question

Quizplus · Accepted Answer

Inventory insurance is an expense associated with carrying inventory, such as storage, handling, and insurance costs. Carrying costs are the expenses of holding inventory, including warehousing, insurance, and finance costs. Therefore, inventory insurance costs are an example of carrying costs. The other options (order, marginal, and total costs) do not specifically relate to the expenses associated with holding inventory.

Inventory Insurance Costs Are an Example of ________ Costs