Which of these is not considered a cost of holding inventory?
A) opportunity cost of having funds tied up in inventory
B) risk of obsolescence
C) risk of bad debts
D) cost of storage and handling

Question

Quizplus · Accepted Answer

The risk of bad debts is not considered a cost of holding inventory as it is related to receivables, not inventory. The other options, opportunity cost of having funds tied up in inventory, risk of obsolescence, and cost of storage and handling, are all costs associated with holding inventory.

Which of These Is Not Considered a Cost of Holding