ECONOMICS

Detailed explanation-1: -In marketing, carrying cost, carrying cost of inventory or holding cost refers to the total cost of holding inventory. This includes warehousing costs such as rent, utilities and salaries, financial costs such as opportunity cost, and inventory costs related to perishability, shrinkage (leakage) and insurance.

Detailed explanation-2: -What Are Warehouse Costs? Warehouse costs vary based on the facility, amount of storage space and services you require. The most common costs are associated with handling (receipt and dispatch), storage space, operations administration and general administrative expenses.

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.

Detailed explanation-4: -Ordering, holding, carrying, shortage and spoilage costs make up some of the main categories of inventory-related costs.

Detailed explanation-5: -Inventory carrying costs-the full amount businesses spend to stock and store items before they’re sold-can have a significant impact on profitability.