The cost of carrying one unit in inventory for a specified period of time,usually one year,is referred to as
A)the material cost and is denoted by C.
B)the fixed ordering cost and is denoted by S.
C)the holding cost and is denoted by H.
D)the purchase price and is denoted by P.

Question

Quizplus · Accepted Answer

The cost of carrying one unit in inventory for a specified period of time is referred to as holding cost and is denoted by H. This cost includes expenses like storage, insurance, obsolescence, and depreciation. Therefore, option C is the correct answer. Option A refers to the cost of the raw material, option B denotes fixed ordering cost, and option D represents the purchase price of the inventory.

The Cost of Carrying One Unit in Inventory for a Specified