COST ACCOUNTING
INVENTORY AND PRODUCTION MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which one is NOT part of inventory holding cost
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Capital cost
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Storage cost
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Risk cost
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Ordering cost
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Explanation:
Detailed explanation-1: -Storage cost is not included in the cost of inventory.
Detailed explanation-2: -Change in sales during the year is not a part of the inventory.
Detailed explanation-3: -Ordering, holding, carrying, shortage and spoilage costs make up some of the main categories of inventory-related costs.
Detailed explanation-4: -Inventory holding costs are calculated as part of the total inventory costs within a single supply chain. Costs include warehousing, insurance, labor, transportation, depreciation, inventory shrinkage, damaged or spoiled inventory, obsolescence, and opportunity costs.
There is 1 question to complete.