Which of the following is/are direct costs associated with inventory?
I. Acquisition costs
II. Carrying costs
III. Order costs
A) I only
B) I and II
C) II and III
D) I, II, and III

Question

Quizplus · Accepted Answer

Acquisition costs, carrying costs, and order costs are all direct costs associated with inventory. Acquisition costs are the expenses incurred to purchase inventory, carrying costs are the costs of holding inventory, and order costs are the expenses related to ordering and receiving inventory.

Which of the Following Is/are Direct Costs Associated with Inventory