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Question 389 - CSCP discussion

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Which of the following costs is an example of carrying cost?

A.
Training
Answers
A.
Training
B.
Transportation
Answers
B.
Transportation
C.
Warehouse rent
Answers
C.
Warehouse rent
D.
Inspection labor
Answers
D.
Inspection labor
Suggested answer: C

Explanation:

Carrying costs, also known as holding costs, are the expenses associated with storing inventory. Warehouse rent is a prime example of carrying costs as it is directly related to the cost of housing inventory. Other examples include utilities, insurance, depreciation, and opportunity costs. These costs are incurred as long as the inventory remains unsold, highlighting the importance of efficient inventory management to minimize carrying costs.

APICS Dictionary, 16th edition.

Inventory Management textbooks.

asked 16/09/2024
Mauro Daniele
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