Which of the following is not included as an inventory holding cost?
A) Annualized cost of materials
B) Handling
C) Insurance
D) Pilferage
E) Storage facilities

Question

Quizplus · Accepted Answer

The annualized cost of materials is not included as an inventory holding cost because it is the cost of acquiring the materials in the first place, not the cost of holding onto them. The other options, such as handling, insurance, pilferage, and storage facilities, are all costs that are incurred as a result of storing and managing inventory.

Which of the Following Is Not Included as an Inventory