ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following costs is NOT considered a carrying cost for inventory?
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Capital costs
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Inventory insurance costs
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Distribution costs
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Storage costs
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Explanation:
Detailed explanation-1: -The answer is option no. 2 i.e. TRANSPORTATION COST.
Detailed explanation-2: -Inventory carrying costs include expenses incurred from storing, transporting, and handling inventory as well as labor costs incurred in those processes. They also include taxes, insurance, item replacement, depreciation, and opportunity costs.
Detailed explanation-3: -Capital cost. Inventory service cost. Inventory risk cost. Storage space cost.
There is 1 question to complete.