MANAGEMENT

BUISENESS MANAGEMENT

INVENTORY MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
This includes warehousing costs such as rent, utilities and salaries, financial costs such as opportunity cost, and inventory costs related to shrinkage (leakage) and insurance
A
carrying cost
B
purchasing cost
C
ordering cost
D
stockout cost
Explanation: 

Detailed explanation-1: -In marketing, carrying cost, carrying cost of inventory or holding cost refers to the total cost of holding inventory. This includes warehousing costs such as rent, utilities and salaries, financial costs such as opportunity cost, and inventory costs related to perishability, shrinkage (leakage) and insurance.

Detailed explanation-2: -What Are Warehouse Costs? Warehouse costs vary based on the facility, amount of storage space and services you require. The most common costs are associated with handling (receipt and dispatch), storage space, operations administration and general administrative expenses.

Detailed explanation-3: -The cost of inventory includes the cost of purchased merchandise, less discounts that are taken, plus any duties and transportation costs paid by the purchaser.

Detailed explanation-4: -Ordering, holding, carrying, shortage and spoilage costs make up some of the main categories of inventory-related costs.

Detailed explanation-5: -Inventory costs involve the expenses associated with purchasing, storing, and managing inventory throughout the ecommerce supply chain. The cost of inventory goes beyond the initial purchase, including storage costs, as well as the costs of holding unsold finished goods.

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