MANAGEMENT

BUISENESS MANAGEMENT

INVENTORY CONTROL

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which of the following is not included as an inventory holding cost?
A
Annualized cost of materials
B
Handling
C
Insurance
D
Pilferage
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.