The costs associated with storage are an example of which cost category?
A)quality costs
B)labor costs
C)ordering costs
D)carrying costs

Question

Quizplus · Accepted Answer

The costs associated with storage are carrying costs, which refer to the expenses incurred to keep inventory in storage, such as rent, utilities, insurance, and depreciation. Quality costs refer to expenses incurred to ensure the quality of products or services, labor costs refer to wages and salaries paid to employees, and ordering costs refer to expenses associated with placing orders, such as shipping and handling fees.

The Costs Associated with Storage Are an Example of Which