Which of the following is NOT a component of holding cost?
A) Tax
B) Insurance
C) Material handling
D) Order processing

Question

Quizplus · Accepted Answer

Tax, insurance, and material handling are all components of holding cost as they are expenses incurred while holding inventory. However, order processing is not a part of holding cost as it is an expense incurred while placing an order, not while holding inventory.

Which of the Following Is NOT a Component of Holding