What are the annual relevant carrying costs of inventory comprised of?
Variant question
A)Incremental costs plus the carrying costs
B)Incremental costs plus the opportunity costs of capital
C)Ordering costs and carrying costs
D)Stockout costs and carrying costs

Question

Quizplus · Accepted Answer

The information provided does not give any specific details about the components of the carrying costs of inventory. However, the generally accepted formula for calculating relevant carrying costs is incremental costs plus the opportunity costs of capital. Therefore, option B is the best choice.

What Are the Annual Relevant Carrying Costs of Inventory Comprised