ECONOMICS

Detailed explanation-1: -Answer and Explanation: It is true that obsolescence, opportunity costs, and inspection are all examples of carrying costs.

Detailed explanation-2: -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-3: -Understanding Obsolescence This results in a loss of value to the business holding the item. For example, if your company purchased 100 widgets, sold 25 of them but could not sell the remaining 75 widgets, the remaining widgets would be considered obsolete inventory.

Detailed explanation-4: -Depreciation and obsolescence. Option b is actually correct answer that is Property tax that is not related to cost of carrying inventory.

Detailed explanation-5: -Obsolescence contributes to the cost of carrying inventory Inventory risk expenses include inventory that loses value while being kept as a result of product deterioration or outmoded products that are no longer in demand from consumers. As a result, they must be sold at a reduced market value.