Which of the following is not a direct cost associated with inventory?
A) acquisition costs
B) order costs
C) carrying costs
D) stock-out costs

Question

Quizplus · Accepted Answer

Stock-out costs are an indirect cost associated with inventory, as they are incurred when a company runs out of inventory and experiences lost sales or production delays. Direct costs of inventory include acquisition costs (the cost of purchasing the inventory), order costs (the cost of placing and processing orders), and carrying costs (the cost of storing and maintaining inventory).

Which of the Following Is Not a Direct Cost Associated