ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Financing cost is ____
|
|
the cost associated with giving up the use of money tied up in inventory.
|
|
|
the cost of the interest you pay to borrow money to purchase inventory.
|
|
|
the cost associated with renting or buying the space needed to store the inventory.
|
|
|
the cost associated with the loss of inventory items that are broken, damaged, spoiled, or stolen.
|
Explanation:
Detailed explanation-1: -An interest expense is the cost incurred by an entity for borrowed funds. Interest expense is a non-operating expense shown on the income statement. It represents interest payable on any borrowings-bonds, loans, convertible debt or lines of credit.
There is 1 question to complete.