Asked by
Henry Marpali
on Oct 18, 2024
Verified
The cost of carrying one unit in inventory for a specified period of time,usually one year,is referred to as
A) the material cost and is denoted by C.
B) the fixed ordering cost and is denoted by S.
C) the holding cost and is denoted by H.
D) the purchase price and is denoted by P.
Holding Cost
The expenses associated with storing unsold goods, including warehousing, insurance, deterioration, and loss.
Material Cost
The expense associated with raw materials and components needed for producing a product.
- Recognize various categories of expenses related to the procurement and storage of inventory.
Verified Answer
GW
Learning Objectives
- Recognize various categories of expenses related to the procurement and storage of inventory.