Veronica decides to order smaller amounts of inventory at a time for her arts and crafts store.She is obviously concerned about _____ costs.
A) processing
B) stock-out
C) warehousing
D) stocking
E) holding

Question

Quizplus · Accepted Answer

Veronica is concerned about holding costs which refer to the expenses incurred while storing and maintaining inventory, such as rent, utilities, insurance, and depreciation. By ordering smaller amounts of inventory, she can reduce the amount of inventory she needs to store, thereby decreasing her holding costs.

Veronica Decides to Order Smaller Amounts of Inventory at a Time