ENTREPRENEURIAL OPERATIONS
INVENTORY 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: -Inventory carrying costs can be sorted into four categories: capital costs, storage costs, service costs and inventory risk costs.
Detailed explanation-3: -Costs include warehousing, insurance, labor, transportation, depreciation, inventory shrinkage, damaged or spoiled inventory, obsolescence, and opportunity costs.
There is 1 question to complete.