Costs associated with holding inventory often include:
A) theft, damage, and obsolescence.
B) financing.
C) warehouse space.
D) supervision.
E) All of these.

Question

Quizplus · Accepted Answer

All of these costs can be associated with holding inventory. Theft, damage, and obsolescence can result in significant losses for a company. Financing costs are incurred if a company has to borrow money to purchase or maintain inventory. Warehouse space is necessary to store inventory, and the cost of rent and utilities adds up over time. Supervision is needed to ensure that inventory is properly managed and accounted for, which requires additional staffing and resources.

Costs Associated with Holding Inventory Often Include