When developing an inventory policy,the only relevant costs are the variable costs

Name: When developing an inventory policy,the only relevant costs are the variable costs
Brand: Quizplus
Rating: 5.0 (36 reviews)

Question

Quizplus · Accepted Answer

Variable costs are the only relevant costs in inventory policy development because they are the costs that change with the level of inventory. Fixed costs, such as rent and insurance, do not change with the level of inventory and are therefore not relevant to inventory policy decisions.

When Developing an Inventory Policy,the Only Relevant Costs Are the Variable