MANAGEMENT

BUISENESS MANAGEMENT

INVENTORY MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Among different types of costs associated with inventory, the opportunity cost of the investment tied up in inventory is a(n) ____
A
purchasing cost
B
ordering cost
C
stockout cost
D
carrying cost
Explanation: 

Detailed explanation-1: -Answer :-D-Carrying Costs .. Explanation :-mong different types of costs associated with inventory, the opportunity cost of the investment tied up…

Detailed explanation-2: -There are three primary categories of inventory costs: ordering, carrying, and stockout costs. Understanding these different types of costs associated with inventory can help you understand the best ways to track, manage, and calculate the total costs of your inventory investment.

Detailed explanation-3: -Inventory holding costs are calculated as part of the total inventory costs within a single supply chain. Costs include warehousing, insurance, labor, transportation, depreciation, inventory shrinkage, damaged or spoiled inventory, obsolescence, and opportunity costs.

There is 1 question to complete.