The two basic costs associated with inventory are production cost and ordering cost.

Name: The two basic costs associated with inventory are production cost and ordering cost.
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The two basic costs associated with inventory are holding cost (storage, handling, insurance etc.) and ordering cost (cost of placing an order, receiving and processing the order). Production cost is the cost of manufacturing the goods, which may or may not be associated with inventory depending on the production system.

The Two Basic Costs Associated with Inventory Are Production Cost