Which of the following costs is a relevant inventory carrying cost of carrying inventory?
A) The lost contribution margin on future sales forgone as a result of customer dissatisfaction in product quality.
B) The lost contribution margin on sales forgone because of the shortage of inventory.
C) The costs of storage space owned that cannot be used for other profitable purposes when inventories decrease.
D) The costs of shrinkage.

Question

Quizplus · Accepted Answer

The costs of shrinkage are directly related to holding inventory and are considered a relevant carrying cost.

Which of the Following Costs Is a Relevant Inventory Carrying