Which inventory cost can include insurance, inventory taxes, and obsolescence?
A) the setup cost
B) the carrying cost
C) the ordering cost
D) the stockout cost

Question

Quizplus · Accepted Answer

Carrying cost includes expenses such as insurance, inventory taxes, and obsolescence. The setup cost pertains to the cost of preparation for production or operation, the ordering cost involves the cost of placing the order, and stockout cost pertains to the cost of running out of stock.

Which Inventory Cost Can Include Insurance, Inventory Taxes, and Obsolescence