ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Cost of insurance and taxes are included in
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Cost of ordering
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Carrying cost
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Setup cost
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Cost of shortage
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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 costs are among the top inventory management challenges companies deal with. These expenses arise from keeping products shelved at a warehouse, distribution center or store and include storage, labor, transportation, handling, insurance, taxes, item replacement, shrinkage and depreciation.
Detailed explanation-3: -The cost of insurance and taxes are included in the inventory cost.
There is 1 question to complete.