COST ACCOUNTING
INVENTORY AND PRODUCTION MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Costs incurred because goods/materials are in inventory are called
|
|
Save Cost
|
|
|
Insurance fee
|
|
|
Cost of Capital
|
|
|
Tax costs
|
Explanation:
Detailed explanation-1: -Inventory carrying costs are the costs related to storing and maintaining its inventory over a certain period of time.
Detailed explanation-2: -Key Takeaways Inventory carrying cost is the total of all expenses related to storing unsold goods. The total includes intangibles like depreciation and lost opportunity cost as well as warehousing costs. A business’ inventory carrying costs will generally total about 20% to 30% of its total inventory value.
Detailed explanation-3: -The cost of inventory includes the cost of purchased merchandise, less discounts that are taken, plus any duties and transportation costs paid by the purchaser.
There is 1 question to complete.