Which of the following is not considered a holding cost?
A)Interest
B)Insurance
C)Depreciation
D)Opportunity cost
E)Stockout cost

Question

Which of the following is not considered a holding cost?
A)Interest 
B)Insurance 
C)Depreciation 
D)Opportunity cost 
E)Stockout cost

Quizplus · Accepted Answer

Stockout cost is not considered a holding cost, as it relates to the cost incurred when inventory is not available to meet demand, rather than the cost of holding inventory. Holding costs include interest, insurance, depreciation, and opportunity cost.

Which of the Following Is Not Considered a Holding Cost