The ________ cost of holding inventory is the income forgone by tying up money in inventory and not investing it elsewhere.
A)future
B)estimated
C)sunk
D)opportunity

Question

Quizplus · Accepted Answer

Opportunity cost is the income forgone by holding inventory instead of investing it somewhere else, making it the most appropriate choice. Sunk cost refers to past expenses that cannot be recovered, future costs are yet to be incurred, and estimated cost is an anticipated but uncertain expense.

The ________ Cost of Holding Inventory Is the Income Forgone