Obsolescence costs are one component of inventory carrying costs.

Name: Obsolescence costs are one component of inventory carrying costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Obsolescence costs refer to the expenses incurred when inventory becomes outdated or unsellable, which is a component of the overall inventory carrying costs. Other components of inventory carrying costs include holding costs, ordering costs, and stockout costs.

Obsolescence Costs Are One Component of Inventory Carrying Costs