Asked by

Spencer Morton
on Nov 07, 2024

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Which of the following is NOT considered to be a carrying cost?

A) Storage costs.
B) Insurance and taxes on inventory.
C) Restocking costs.
D) Losses due to theft.
E) The opportunity cost of capital on the invested amount.

Carrying Cost

The total cost of holding inventory, including storage, depreciation, obsolescence, and insurance.

Storage Costs

Expenses associated with storing a company's products or materials until they are needed or sold.

Insurance and Taxes

Mandatory expenses that include payments for risk coverage policies and contributions to state and federal governmental bodies.

  • Learn about the components of carrying costs and the distinction between various types of costs.
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Himanshu BhardwajNov 07, 2024
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