Which cost should only include receiving and storage costs that vary with the quantity of product received?
A)Cost of capital
B)Obsolescence (spoilage)cost
C)Handling cost
D)Occupancy cost

Question

Quizplus · Accepted Answer

Handling cost includes costs associated with receiving and storing products, but only those costs that vary with the quantity of product received. Cost of capital and occupancy cost are unrelated to the quantity of product received, while obsolescence (spoilage) cost is related to the deterioration of products over time, rather than the quantity received.

Which Cost Should Only Include Receiving and Storage Costs That