ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Inventory holding cost includes
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Material purchase cost
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Penalty charge of default
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Interest on loans
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None of above
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Explanation:
Detailed explanation-1: -Inventory holding cost is that cost which is incurred by the organization to hold the unsold inventory. This cost includes the cost of storing the inventory, ordering cost, cost of storage space, cost of insurance of the inventory.
Detailed explanation-2: -Storage cost is not included in the cost of inventory.
Detailed explanation-3: -Capital cost. Inventory service cost. Inventory risk cost. Storage space cost. Calculate the value of each of your inventory cost components (inventory service cost, inventory risk cost, capital cost, and storage cost). More items
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