BUISENESS MANAGEMENT
INVENTORY CONTROL
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is not included as an inventory holding cost?
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Annualized cost of materials
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Handling
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Insurance
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Pilferage
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Explanation:
Detailed explanation-1: -Storage cost is not included in the cost of inventory.
Detailed explanation-2: -Change in sales during the year is not a part of the inventory.
Detailed explanation-3: -Rent for space, security, depreciation costs and insurance are among inventory holding costs.
Detailed explanation-4: -Hence, storage expenses are not a part of inventory.
There is 1 question to complete.