Which one of the following is not an inventory carrying cost?
A) Insurance expense for the inventory
B) Opportunity cost of capital for inventory investment
C) Cost of buying raw materials
D) Cost of shelf space

Question

Quizplus · Accepted Answer

Cost of buying raw materials is not an inventory carrying cost as it is a direct cost that goes into the manufacturing or production of a product. The other options, such as insurance expense for the inventory, opportunity cost of capital for inventory investment, and cost of shelf space, are examples of inventory carrying costs.

Which One of the Following Is Not an Inventory Carrying