BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The expenses involved in storing inventory until it is issued are called ____
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ordering costs
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carrying costs
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warehouse costs
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Explanation:
Detailed explanation-1: -Carrying costs are the various costs a business pays for holding inventory in stock. Examples of carrying costs include warehouse storage fees, taxes, insurance, employee costs, and opportunity costs.
Detailed explanation-2: -Carrying cost is the amount that a business spends on holding inventory over a period of time. It is the cost of owning, storing, and keeping the items in stock.
Detailed explanation-3: -Carrying costs are these expenses added up and expressed as a percentage of your inventory value. Carrying costs relate to any inventory a business is carrying, even if it will be sold quickly.
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