Which of the following distribution costs is categorized as an inventory carrying cost?
A)Cost of lost business
B)Insurance
C)Packaging
D)Materials handling

Question

Quizplus · Accepted Answer

Insurance is an inventory carrying cost as it protects the inventory from any unforeseen events such as theft or damage. The other options are not inventory carrying costs - cost of lost business is a cost of not having inventory, packaging is a cost of producing the product, and materials handling is a cost of moving the product.

Which of the Following Distribution Costs Is Categorized as an Inventory