Which of the following is an example of a carrying cost of holding an inventory?
A)the managerial time spent creating an order for inventory
B)the delivery charges for an order
C)the cost of the paperwork necessary to pay for each order
D)the cost of storage

Question

Quizplus · Accepted Answer

The cost of storage, such as rent for warehouse space, is one of the most direct and significant carrying costs of holding inventory. It also includes property taxes, insurance, utilities, equipment, and maintenance expenses associated with the storage facility. Option A, B, and C are costs associated with ordering or purchasing inventory, not with holding it.

Which of the Following Is an Example of a Carrying