Which of the following is NOT a direct cost associated with inventory?
A)acquisition costs
B)stock-out costs
C)carrying costs
D)order costs

Question

Quizplus · Accepted Answer

Stock-out costs are indirect costs associated with inventory. They are costs incurred as a result of the shortage of inventory, such as lost sales, backorders, and customer dissatisfaction. Direct costs associated with inventory include acquisition costs (the cost of purchasing inventory), carrying costs (the cost of holding inventory), and order costs (the cost of placing and receiving orders).

Which of the Following Is NOT a Direct Cost Associated