Which of the following is usually included as an inventory holding cost?
A)Breakage
B)Order placing
C)Typing up an order
D)Quantity discounts
E)Annualized cost of materials

Question

Quizplus · Accepted Answer

Breakage is usually included as an inventory holding cost. The cost incurred due to breakage of goods while holding in inventory is considered as a holding cost. Option B, C, and D are ordering costs. Option E is the cost of the materials themselves and is not considered an inventory holding cost.

Which of the Following Is Usually Included as an Inventory