Which category of inventory holding costs is much higher than average for rapid-change industries such as PCs and cell phones?

A) housing costs
B) material handling costs
C) labour cost
D) parts cost
E) pilferage, scrap, and obsolescence

Rapid-change Industries

Industries characterized by fast-paced innovation and technological advancements, requiring companies to quickly adapt to maintain competitiveness.

Inventory Holding Costs

encompass all expenses related to storing unsold goods, including warehousing, insurance, depreciation, opportunity cost, and spoilage, significant in inventory management decisions.

Pilferage

The theft of small quantities of goods, typically from an employer or a retail setting, often considered a form of inventory shrinkage.